Wells Fargo Agrees to Pay $575 Million to 50 State Regulators Over Fake Account Scandal and Other Activities

Posted on January 11th, 2019 at 1:28 PM
Wells Fargo Agrees to Pay $575 Million to 50 State Regulators Over Fake Account Scandal and Other Activities

From the Desk of Jim Eccleston at Eccleston Law LLC:

In a statement announced by Iowa Attorney General Tom Miller, Wells Fargo has agreed to pay $575 million to state attorney generals in all 50 states in order to resolve claims against the bank for violations of consumer protection laws relating to the opening of millions of fake accounts as well as other fraudulent activities.

According to claims made by state attorney generals throughout the United States, Wells Fargo opened approximately 3.5 million accounts without consumer consent as a result of its aggressive sales practices. In addition, Wells Fargo improperly referred customers for enrollment in third-party renters and life insurance policies; improperly charged auto loan customers for insurance; failed to ensure that customers received refunds of unearned premiums on some optional auto finance products; and incorrectly charged customers for mortgage rate lock extension fees.

Wells Fargo’s agreement to pay $575 million in restitution is the single largest state government settlement in history and is separate from actions previously taken by federal regulators.

As a result of the settlement, Wells Fargo will create a consumer restitution review program in an effort to attempt to reimburse bank customers.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, wells fargo, fake accounts, restitution, fraud

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