Wells Fargo will pay the Consumer Financial Protection Board (CFPB) and the Office of Comptroller of the Currency (OCC) a total of $1 billion to settle various investigations into lending practices; $500 million to each regulator.
The fines and investigations are broken into 2 major categories:
- Mortgages: Customers were forced to pay for extending the timeframe for interest rate locks on new mortgages, even when the bank caused the delay.
- Auto insurance: 27,000 customers who bought cars with loans were forced to buy unnecessary auto insurance policies from Wells Fargo with premiums at or above $1,000 per year. This led to thousands of customers going into default on their auto loans and repossessions.
There is also a 3rd aspect the OCC fined Wells Fargo for stemming from general compliance issues.
Before this penalty, Wells Fargo has already been fined a total of $1.5 billion for the scandal opening millions of false accounts in customers’ name, punishing whistle-blowers, and unlawfully repossessing military servicemembers’ cars.