Wells Fargo Ordered To Pay $3.7 Billion Over Widespread Illegal Activity

1,614 Views | 11 Replies | Last: 3 yr ago by ABATTBQ11
Krombopulos Michael
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Wells Fargo has been ordered to pay $3.7 billion by the Consumer Financial Protection Bureau (CFPB) for a variety of illegal activity, including wrongfully foreclosing on homes, illegally repossessing vehicles, incorrectly assessing fees and interest, and charging surprise overdraft fees.

More via the CFPB:
According to today's enforcement action, Wells Fargo harmed millions of consumers over a period of several years, with violations across many of the bank's largest product lines. The CFPB's specific findings include that Wells Fargo:

  • Unlawfully repossessed vehicles and bungled borrower accounts: Wells Fargo had systematic failures in its servicing of automobile loans that resulted in $1.3 billion in harm across more than 11 million accounts. The bank incorrectly applied borrowers' payments, improperly charged fees and interest, and wrongfully repossessed borrowers' vehicles. In addition, the bank failed to ensure that borrowers received a refund for certain fees on add-on products when a loan ended early.
  • Improperly denied mortgage modifications: During at least a seven-year period, the bank improperly denied thousands of mortgage loan modifications, which in some cases led to Wells Fargo customers losing their homes to wrongful foreclosures. The bank was aware of the problem for years before it ultimately addressed the issue.
  • Illegally charged surprise overdraft fees: For years, Wells Fargo unfairly charged surprise overdraft fees - fees charged even though consumers had enough money in their account to cover the transaction at the time the bank authorized it - on debit card transactions and ATM withdrawals. As early as 2015, the CFPB, as well as other federal regulators, including the Federal Reserve, began cautioning financial institutions against this practice, known as authorized positive fees.
  • Unlawfully froze consumer accounts and mispresented fee waivers: The bank froze more than 1 million consumer accounts based on a faulty automated filter's determination that there may have been a fraudulent deposit, even when it could have taken other actions that would have not harmed customers. Customers affected by these account freezes were unable to access any of their money in accounts at the bank for an average of at least two weeks. The bank also made deceptive claims as to the availability of waivers for a monthly service fee.
Wells Fargo is a repeat offender that has been the subject of multiple enforcement actions by the CFPB and other regulators for violations across its lines of business, including faulty student loan servicing, mortgage kickbacks, fake accounts, and harmful auto loan practices.



https://www.zerohedge.com/personal-finance/wells-fargo-ordered-pay-37-billion-over-widespread-illegal-activity
[url=https://www.zerohedge.com/personal-finance/wells-fargo-ordered-pay-37-billion-over-widespread-illegal-activity][/url]

Serious questions......Shouldn't someone (i.e. CEO, Directors and Board Members) be going to prison for this? and why is the bank allowed to continue to operate?
Burdizzo
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Wells Fargo holds my mortgage that I have been paying since 2006. I have made all my payments on time and wi pay it off early.

Can I get some of my money back, or are these billions going to people who didn't make payments on time?
unmade bed
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Sure, people should go to prison if they committed illegal activity punishable by prison time. However running afoul of the CFPB is by no means evidence that anything illegal occurred.
DrEvazanPhD
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Burdizzo said:

Wells Fargo holds my mortgage that I have been paying since 2006. I have made all my payments on time and wi pay it off early.

Can I get some of my money back, or are these billions going to people who didn't make payments on time?
Of course not. You're clearly rich, able to pay off your mortgage on time, and privileged in that you want to do things the right way.

See: loans, student.
fasthorse05
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I'm no big fan of the CFPB, at all. Candidly, ANY government operation with the name "protection" in it is usually just the opposite.

However, I suspect most, IMO 70% of these transgressions, are correct and justly deserved. I'm not saying don't fine the bank, I'm just saying there's GOT to be another way outside of penalizing the current, and future, customers of WF because that's exactly who's going to pay for it. Yes, the officers with the stock options will take a hit, but the stock price will likely recover in 6 to 12 months.
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Krombopulos Michael
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unmade bed said:

Sure, people should go to prison if they committed illegal activity punishable by prison time. However running afoul of the CFPB is by no means evidence that anything illegal occurred.
So the fine is just a cost of doing business in your opinion?

I thought banks were supposed to be heavily regulated and monitored for fraud by multiple govt agencies.
Adverse Event
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Just trust them.

Trust is all you need. Here eat this yummy sugary thing, drink this alcoholic beverage, turn on the news and scream at the bad people they tell you to scream at.

Don't worry about it
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Madagascar
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Now do PayPal!
Fightin_Aggie
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Burdizzo said:

Wells Fargo holds my mortgage that I have been paying since 2006. I have made all my payments on time and wi pay it off early.

Can I get some of my money back, or are these billions going to people who didn't make payments on time?
I avoided wells fargo when I refinanced because they wrongly assessed extra flood insurance on my house.

then the ****ers bought my refinance.

Paid it off so they would hit the bricks.
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Justin2010
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Why would anybody do business with that bank? After the fake accounts thing, and now this? Hard pass.
Four Seasons Landscaping
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Quote:

Why would anybody do business with that bank?
Because they started banking with a small regional bank a bunch of mergers/aquisitions ago and are just too lazy to move all their accounts.
ABATTBQ11
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Burdizzo said:

Wells Fargo holds my mortgage that I have been paying since 2006. I have made all my payments on time and wi pay it off early.

Can I get some of my money back, or are these billions going to people who didn't make payments on time?


Did Wells Fargo illegally charge you fees and interest, misapply your payments, overcharge you for products, continue charging you for products after they should have stopped, illegally foreclose on your home, illegally repossess your vehicle, or in any way defraud you or incur damages against you? No? Then why would you be due anything?
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