Sat, 25 Sep 2021

Wells Fargo again fined for defrauding customers

Robert Besser
13 Sep 2021, 21:30 GMT+10

WASHINGTON, D.C.: Wells Fargo was fined $250 million and is facing restrictions on its business after it failed to adequately pay back those customers it had charged excessive or improper fees.

"Wells Fargo has not met the requirements of the OCC's 2018 action against the bank. This is unacceptable," said acting Comptroller of the Currency Michael Hsu in a statement.

In 2018, Wells Fargo agreed to a joint $1 billion settlement with regulators, who found the bank had wrongly layered the insurance on hundreds of thousands of drivers and routinely assessed excessive and improper fees on homebuyers.

In a statement, Wells Fargo Chief Executive Charles Scharf said the new penalty shows more work is needed to address "significant, longstanding deficiencies."

"Our work to build the right foundation for a company of our size and complexity will not follow a straight line. We are managing multiple issues concurrently, and progress will come alongside setbacks. That said, we believe we're making significant progress," he added, as quoted by Reuters.

The penalty marks the latest accusation against the bank, which began addressing widespread customer abuses nearly five years ago.

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