Wells Fargo Pays $185 Million for Opening Unauthorized Accounts
Consumer Financial Protection Bureau (CFPB) fined Wells Fargo Bank, N.A. $100 million for its employees secretly opening unauthorized deposit and credit card accounts. Driven by sales targets and compensation incentives, employees boosted sales figures by covertly opening accounts and funding them by transferring funds from consumers’ authorized accounts without their knowledge or consent, often racking up fees or other charges. According to the bank’s own analysis, employees opened more than two million deposit and credit card accounts that may not have been authorized by consumers. Wells Fargo will pay full restitution to all victims and a $100 million fine to the CFPB’s Civil Penalty Fund. The bank will also pay an additional $35 million penalty to the Office of the Comptroller of the Currency, and another $50 million to the City and County of Los Angeles.