The Wells Fargo Bank is being heavily fined and customers are wondering to know how much they will receive in reimbursement. If you are among the customers affiliated with Wells Fargo Bank, here is everything you need to know about how much the Wells Fargo Bank customers will receive in reimbursement and how much do they need to pay as a fine.
You would be surprised to know that Wells Fargo Bank is been ordered to pay a fine worth $3.7 billion, which is the largest penalty that any bank has received so far.
Wells Fargo is a renowned American multinational bank founded in the year 1929. It is also a famous financial advisory company. Lately, the bank has landed in hot waters after it was caught violating several consumer rights. As per the available reports, the bank has been violating customer rights for several years now.
Finally, on Tuesday, 20th December 2022, the bank was fined to pay an amount of $3.7 billion. The majority of this fine would be given to its customers and the rest would be charged as a fine for violating the customer’s rights.
Below we have gathered more information about this case. Keep reading to get all the details.
How Much The Wells Fargo Bank Has To Pay As Fine To Its Customers?
After Wells Fargo Bank is fined heavily, several users have taken to Twitter to share their opinion about the case.
The major reason for this fine was that the bank was involved in levying high-interest rates on loans and mortgages. It also charged a higher and illegal fee from the customers. Reports further claim that, the bank also confiscated unlawfully several houses and cars possessed by its customers. Following these illegal tactics of the bank, more than 16 million customers are being affected.
The Consumer Financial Protection Bureau (CFPB) has reported that “The bank’s illegal conduct led to billions of dollars in financial harm to its customers and, for thousands of customers, the loss of their vehicles and homes.”
Several people have shared their opinion about the case on Twitter. Here is how users and organizations have responded to this news:
One user wrote, “I don’t know why people keep using Wells Fargo. They are notorious for defrauding their customers. They just got hit with yet another fine of $3.7 billion for illegal activity. Don’t use this bank for any reason whatsoever!”
“As a former @WellsFargo shareholder, there is no question the bank is criminal. However everyone knows this”, reported another shareholder of the bank.
“Wells Fargo ordered to pay $3.7 billion in fines and refunds to customers over consumer loan violations, the largest fine to date against the bank”, reported ABC News.
Wells Fargo Fine Amount
The federal agencies have ordered the bank to pay a fine of $3.7 billion. Out of the total fine amount, $2 billion will be given to the customers as reimbursements while the remaining amount would be charged for violating customer funds and rights.
Well, this is not the first time the bank has been involved in illegal activities. Earlier in 2016, the bank faced similar charges but it did not face any serious consequences except some warnings.
CBS news has also reported the news and has called the case in the below words:
“Banking giant Wells Fargo has agreed to pay more than $3.5 billion to settle accusations that it charged its customers illegal fees and interest on auto loans and mortgages. The bank was also accused of incorrectly applying overdraft fees against savings and checking accounts”.
Despite receiving warnings, the bank kept following its illegal practices. In 2018, it faced a penalty of $1 billion for mismanaging consumer funds.
Responding to the case, Charlie Scharf, the CEO of the company said, “We and our regulators have identified a series of unacceptable practices that we have been working systematically to change.”
The company is currently making headlines online and that too for all bad reasons. Customers have expressed their gratitude for penalizing the company and giving them back their due rights.
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The Bottom Line
This was all about how much the Wells Fargo bank is fined and what their customers will receive in reimbursement. Out of the $3.7 billion fine, $2 billion will be given to the customers.