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  • Writer's pictureConsulting24

Wells Fargo was fined a record amount of $1.7 billion

On Tuesday, Wells Fargo was fined a record amount of $1.7 billion by federal regulators for "widespread mismanagement" that affected over 16 million consumer accounts.

According to the Consumer Financial Protection Bureau (CFPB), Wells Fargo's "illegal activity" included misapplying loan payments, wrongfully foreclosing on homes, illegally repossessing vehicles, incorrectly assessing fees and interest, and charging surprise overdraft fees.

In addition to the $1.7 billion civil penalty, the CFPB also ordered Wells Fargo to compensate consumers with over $2 billion for the various "illegal activities." This is the largest penalty ever imposed by the CFPB. The misconduct described by the CFPB is similar to the revelations about Wells Fargo that have come to light since the bank's fake-accounts scandal in 2016.

CFPB Director Rohit Chopra stated, "Wells Fargo's rinse-repeat cycle of violating the law has harmed millions of American families." Officials also emphasized that Wells Fargo is not yet done facing penalties from regulators.

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