CFPB Seeks $1B+ in Fines From Wells Fargo

The Consumer Financial Protection Bureau (CFPB) wants Wells Fargo to pay more than $1 billion for alleged mistreatment of customers, a settlement that would surpass the agency’s record … last set by Wells Fargo.

That’s according to a Friday (Nov. 4) report from Bloomberg News, citing people familiar with the matter. The discussions reportedly deal with the banking giant’s automobile lending, consumer-deposit accounts and mortgage lending business.

Sources told Bloomberg a deal with the bureau is not ready and likely won’t arrive this month. With CFPB Director Rohit Chopra pledging to impose harsher punishments for bigger companies, the agency could look to put restrictions on Wells Fargo’s business along with levying a fine, some of the sources said.

A Wells Fargo spokesperson told PYMNTS the company declined to comment on the matter.

The CFPB was not immediately available for comment.

Wells Fargo in 2018 agreed to pay a $1 billion fine after the CFPB accused it of overcharging consumers on mortgages and adding insurance costs and fees to some auto loans through a mandatory insurance program.

Read more: Wells Fargo Facing Class-Action Lawsuit Over Alleged Zelle Scams

Earlier this year, Wells Fargo and money transfer service Zelle were named in a class-action lawsuit sparked by a Seattle resident who claims he was the victim of a scam targeting Wells Fargo Bank customers who use the Zelle app.

The victim claimed that fraudsters stole $7,500 from him by mimicking a Wells Fargo customer service agent who then asked him to send them money, according to court documents.

The suit also claimed that Wells Fargo and Zelle “knew or should have known” that this sort of scam could occur and of the possible “financial detriment to consumers.”

The victim later dropped the suit, but did not explain why.

As PYMNTS noted in September, Chopra already had made a name for himself as a tough enforcer from his time at the Federal Trade Commission (FTC) and a previous role with the CFPB. Part of his goal at the CFPB is to make the bureau more consumer-oriented and less friendly toward financial firms.