Wells Fargo fined $3.7 billion for illegal practices
Wells Fargo owes customers money in major settlement
Wells Fargo customers were victims of illegal practices from cheating them on their mortgages and auto loans too much, much more the government says. The FOX 5 I-Team's Dana Fowle breaks down who is eligible in the multi-billion dollar settlement and when.
ATLANTA - More information is flowing regarding the Wells Fargo $3.7 billion settlement.
A consumer watchdog group found the banking giant used "illegal" practices in banking as well as home and auto loans.
According to the Consumer Financial Protection Bureau one in three Americans is a Wells Fargo customer. In a recent blog post, the agency wrote that more than 16 million accounts at Wells Fargo were subject to illegal practices, misapplied payments, wrongful foreclosures, and incorrect fees and interest charges.
Some customers have already started to see their payments from Wells Fargo, but it is an ongoing effort.
MORTGAGE LOANS
Some borrowers were unfairly turned down when they requested modifications to their loan to avoid foreclosure, and charged fees they shouldn’t have been charged. The bank wrongly reported some customers as deceased, overstated attorney fees, and brought wrongful foreclosure actions.
AUTO LOANS
Borrowers with GAP insurance may not have been refunded that money when the loan terminated early. Some auto loan payments were not applied correctly to balances which meant higher interest charges, and auto repos were mismanaged.
BANKING ACCOUNTS
Customers were charged overdraft fees even if they had the money on their account. Wells Fargo advertised no fees in some circumstances but did in fact charge. And finally, some customers had their account unfairly frozen for weeks.
THE CFPB writes: If you’re having a problem with a financial institution, first try to resolve it directly with the company. They can generally answer questions unique to your situation and the products and services they offer.
If that doesn’t resolve the problem, you can submit a complaint to the CFPB online or by calling (855) 411-CFPB (2372). We’ll forward your complaint to the company and work to get you a response. Most companies respond to complaints within 15 days.
And if you witness potential misconduct as an employee or former employee at a financial company, you can send an e-mail to whistleblower@cfpb.gov. We review every submission.