Wells Fargo has been ordered by federal regulators to pay $3.7 billion to settle charges that it charged illegal fees on home and car loans and incorrectly charged overdraft and other fees.
The U.S. Consumer Financial Protection Bureau on Tuesday announced the enforcement action, which includes $2 billion in redress to more than 16 million customers and a $1.7 billion fine.
The CFPB found that Wells Fargo unlawfully repossessed vehicles due to “systematic failures” and improperly denied mortgage modifications that led to wrongful foreclosures.
“Wells Fargos rinse-repeat cycle of violating the law has harmed millions of American families,” said CFPB Director Rohit Chopra, calling the bank a “repeat offender.”
