Daily News: January 2, 2019

Wells Fargo Pays $575MM to Settle Claims Over Retail Practices

Wells Fargo agreed to pay $575 million to settle civil claims with all 50 state Attorneys General and the District of Columbia over its previous problematic retail sales practices, auto collateral protection insurance and guaranteed asset/auto protection and mortgage interest rate lock matters.

The company has been engaged with its federal regulators to address these issues and will remediate affected customers.

“This agreement underscores our serious commitment to making things right in regard to past issues as we work to build a better bank,” said Tim Sloan, Wells Fargo president and CEO.

Under the terms of the agreement, Wells Fargo will:

  • Pay a total of $575 million to resolve civil claims that states may otherwise bring arising out of or related to the covered conduct prior to the effective date of the agreement
  • Maintain designated teams to review and respond to customer inquiries on the covered issues
  • Create and maintain a website that describes the issues and Wells Fargo’s existing remediation efforts, and identifies contact information for consumers to utilize if they have any questions or concerns about the covered issues

Wells Fargo will also provide periodic reports to the states on the progress of its existing remediation efforts.

As of the end of third quarter 2018, the company had accrued $400 million of the settlement amount and expects to accrue the remaining $175 million in fourth quarter 2018.