Wells Fargo Bank Facing $1 Billion Fine From The CFPB For Mortgage And Auto Insurance Issues
It looks like Wells Fargo Bank is about to break a record! Wells Fargo Bank is facing a record fine of a billion dollars from the Consumer Financial Protection Bureau. The record-breaking fine even has the support of President Trump!
Former CFPB Director Richard Cordray initiated the investigation into Wells Fargo. He supposedly signed off on a fine before resigning in November 2017.
However, Reuters reported in December that CFPB Acting Director Mick Mulvaney was reviewing the situation and could choose not to move forward with the fine.
Fines and penalties against Wells Fargo Bank for their bad acts against their customers and others will not be dropped, as has incorrectly been reported, but will be pursued and, if anything, substantially increased, I will cut Regs but make penalties severe when caught cheating!
Experts believed Wells Fargo Bank was only facing a potential fine of less than $100 million. It was also believed it was only for the fake account scandal.
Wells Fargo Bank is facing a fine from the CFPB. However, it won’t be for a mere $100 million. It will be for ten times that amount.
The bank also faces fines for charging 110,000 borrowers approximately $98 million in rate lock extension fees.
Additionally, Wells Fargo disclosed last year that it may have wrongfully force-placed auto insurance on as many as 570,000 customers.
Wells Fargo said that it planned to refund the affected customers. However, those refunds may be the least of the financial fallout from the issues.