Wells Fargo to Pay $190 Million for Illegally Opened Accounts

What's Hot


The Most Sinful City in the U.S. Is … (Hint: It’s Not Vegas)Family

How a Mexican Tariff Will Boost the Cost of 6 Common PurchasesFamily

This Free Software Brings Old Laptops Back to LifeMore

How to Protect Yourself From the ‘Can You Hear Me?’ Phone ScamFamily

Report: Walmart to Begin Selling CarsCars

Where to Sell Your Stuff for Top DollarAround The House

Is Your TV Tracking You? Here’s How to Tell — and Prevent ItAround The House

11 Staging Tips to Help You Get Top Dollar When Selling Your HomeAround The House

21 Restaurants Offering Free Food Right NowSaving Money

20 Simple Hacks to Make Your Stuff Last LongerAround The House

4 Car Insurers That Might Raise Rates Even When the Accident Wasn’t Your FaultCars

How to Invest If Trump Kills the ‘Fiduciary Rule’Grow

12 Surprising Ways to Wreck Your Credit ScoreBorrow

8 Tuition-Free U.S. CollegesCollege

These Are the 25 Best Jobs in the U.S.Jobs & Work

9 Secret Ways to Use Toothpaste That Will Make You SmileAround The House

The 2 Types of Music That Most Improve Dog BehaviorFamily

Federal regulators say bank workers secretly opened more than 2 million unauthorized accounts to boost their sales figures, leaving unwitting consumers on the hook for charges.

Wells Fargo Bank must shell out $190 million to settle claims over what federal regulators are calling a “widespread illegal practice.” Federal authorities say bank employees’ secretly opened unauthorized deposit and credit card accounts to meet Wells Fargo sales targets and earn financial incentives.

According to the Consumer Financial Protection Bureau, thousands of Wells Fargo workers opened more than 2 million accounts without customer knowledge or consent, leaving the unsuspecting account holder on the hook for fees and other charges associated with the new accounts.

The Wells Fargo bank workers allegedly opened the new accounts in an effort to meet sales targets and earn bonus money.

As a result of the illegal account openings, Wells Fargo has been ordered to pay a $100 million fine to the CFPB — the largest penalty the federal consumer watchdog has ever imposed. The bank must also pay $35 million to the Office of the Comptroller of the Currency, $50 million to the City and County of Los Angeles, and $5 million more in what the bank is calling “customer remediation.”

Richard Cordray, CFPB director, says in a statement:

“Today’s action should serve notice to the entire industry that financial incentive programs, if not monitored carefully, carry serious risks that can have serious legal consequences.”

According to the CFPB’s consent order, Wells Fargo has already terminated 5,300 employees involved with illegally opening the accounts. The bank issued the following statement regarding the settlement:

Wells Fargo is committed to putting our customers’ interests first 100 percent of the time, and we regret and take responsibility for any instances where customers may have received a product that they did not request.

The CFPB says Wells Fargo employees opened new accounts and transferred customers’ money, applied for customer credit cards, and issued and activated debit cards — all without customer knowledge or authorization.

What do you think of the Wells Fargo settlement? Share your comments below or on our Facebook page.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: 8 Ways to Get Your FICO Score for Free

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,836 more deals!