Wells Fargo has agreed to pay $3.7 billion in a deal with regulators to resolve allegations that it harmed more than 16 million people with deposit accounts, auto loans and mortgages.
The Government alleged that the bank illegally assessed fees and interest charges on loans for cars and homes. Some consumers had their vehicles illegally repossessed while others had overdraft fees unlawfully applied.
The bank had signaled for months that it expected another regulatory penalty, and it took a $2 billion charge in the third quarter tied to resolving long-running legal and regulatory issues. On December 20, 2022, the bank said that it expects an operating losses expense of $3.5 billion in the current quarter.
Jeffrey Newman is a whistleblower lawyer with the firm Jeff Newman Law and can be reached at jeff@jeffnewmanlaw.com or at 978-880-4758.
