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Wells Fargo faces possible record fine for car, mortgage abuses: Report

Wells Fargo faces a record fine of at least several hundred million dollars for consumer abuse, according to a report.

The bank, which has worked under a scandal of fake accounts and other black eyes since September 2016, is being targeted by the Consumer Financial Protection Office, Reuters reported, citing sources.

The bank already paid $ 100 million CFPB sanction to solve the problem of false accounts, in which employees opened about 3.5 million accounts for customers without their knowledge. The employees involved were trying to meet the aggressive sales targets, which have since been discontinued. That fine was part of a $ 185 million Wells agreement with several authorities.

For the last fine, Wells Fargo would pay for auto insurance and mortgage loan abuses. Reuters noted that this would be the first major sanction issued by CFPB since Mick Mulvaney, who also heads the Office of Management and Budget, took over.

Mulvaney can press for a fine of up to one billion dollars, Reuters reported. [19659003] Wells Fargo declined to comment and the CFPB did not immediately respond to a request for comment.

In the mortgage case, the bank allegedly made unauthorized changes in borrowers' accounts that reduced monthly payments but extended the terms in some cases for decades.

Auto insurance infractions involve cases in which employees forced more than half a million units to purchase coverage they did not need. The bank blamed the situation on an external provider.

The full Reuters story can be read here.


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