Rhode Island joins states reaching $575 million nationwide settlement with Wells Fargo

By Marian Johns | Jan 7, 2019

PROVIDENCE — The state of Rhode Island is part of  a $575 million nationwide settlement https://www.ri.gov/press/view/34934 over the alleged fraudulent opening of millions of accounts and other illegal practices by Wells Fargo, according to the state's Attorney General's Office. 

The settlement resolves charges that Wells Fargo opened millions of accounts for customers without authorization and enrolled customers in online banking services without permission, according to the Attorney General's Office. Wells Fargo also illegally enrolled customers in third party renters and life insurance polices, charged auto loan customers for "force-laced" collateral insurance, did not supply refunds for unearned premiums on optional finance products and charged customers "mortgage rate-lock extension fees," the Attorney General's Office said. 

"Wells Fargo aggressively deceived consumers on multiple levels, all in the name of increasing profits, adversely impacting millions of consumers financially," Rhode Island Attorney General Peter Kilmartin said in a statement.  "It is a prime example of Wall Street executives eschewing their responsibilities to customers and thumbing their nose at regulations put in place to ensure these types of practices never happened in the first place.

"[This] settlement is a result of the hard work by states to get relief for consumers, make Wells Fargo pay for its actions and put in further controls to ensure the company does not engage in such deceptive practices in the future."  

Rhode Island's portion of the nationwide settlement is $1,216,915, according to Kilmartin's office. 

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