NEWS

Wells Fargo Will Pay $575 Million To Settle Lawsuits

SMS
Wells Fargo Will Pay $575 Million To Settle Lawsuits
Wells Fargo will pay more than half a billion dollars to settle numerous state {investigations?} over misleading or fraudulent practices.
SHOW TRANSCRIPT

Wells Fargo will pay $575 million total to every state and the District of Columbia to settle lawsuits related to, in part, creating millions of fake-accounts. 

 

In September 2016, the bank admitted to creating more than three million fake bank and credit card accounts without customers' knowledge or consent. Employees said they felt pressured to do so to meet the company's sales goals.

In a statement, Wells Fargo's CEO said the agreement underscores its "serious commitment to making things right in regard to past issues as we work to build a better bank." 

Since April, Wells Fargo has paid at least $2 billion in fines related to various issues, including investigations into its mortgage and auto loan practices.

Because of these scandals, the Federal Reserve has restricted the bank's growth until it's satisfied Wells Fargo has taken the appropriate steps to clean up its act.

Additional reporting from Newsy affiliate CNN.