WASHINGTON (Legal Newsline) — The Consumer Financial Protection Bureau (CFPB) announced April 20 Wells Fargo Bank NA will pay $1 billion allegedly violating the Consumer Financial Protection Act (CFPA).
The CFPB coordinated with the Office of the Comptroller of the Currency (OCC) in reaching the settlement with Wells Fargo.
The CFPB alleged Wells Fargo violated the CFPA in the way it administered a mandatory insurance program related to auto loans. Additionally, Wells Fargo purportedly handled mortgage interest rate-lock extensions in an improper way.
The $1 billion penalty includes $500 million already collected by the OCC. Wells Fargo also agreed to remediate consumers who have been harmed by its allegedly improper activities. The company will make changes to its risk management and compliance management business practices as well.
"I am especially pleased that we were able to work closely and effectively with our colleagues at the OCC, and I appreciate the key role they played in the negotiations," bureau acting director Mick Mulvaney said in a statement. "As to the terms of the settlement, we have said all along that we will enforce the law. That is what we did here."