Wells Fargo to pay $3.7B over consumer loan violations

FILE – This Jan. 13, 2021 file photo shows a Wells Fargo office in New York. Wells Fargo’s second-quarter sales and profit fell short of Wall Street…

FILE – This Jan. 13, 2021 file photo shows a Wells Fargo office in New York. Wells Fargo’s second-quarter sales and profit fell short of Wall Street expectations, even as the nation’s largest mortgage lender saw its net interest income jump due to higher interest rates. (AP Photo/Mark Lennihan, File)

by: The Associated Press

Posted: Dec 20, 2022 / 09:28 AM EST

Updated: Dec 20, 2022 / 09:57 AM EST

WASHINGTON (AP) – Consumer banking giant Wells Fargo is being ordered to pay $3.7 billion in fines and refunds to customers by U.S. government regulators, the largest fine to date against the bank.

Wells has spent years trying to rehabilitate itself after a series of scandals tied to its sales practices.

The Consumer Financial Protection Bureau on Tuesday ordered Wells to repay $2 billion to consumers and enacted a $1.7 billion penalty against the bank.

The bureau spelled out a laundry list of consumer financial law violations, from illegal fees and interest on auto loans and mortgages, as well as incorrectly applied overdraft fees against savings and checking accounts.