Adobe Stock

Reuters is reporting that the Consumer Financial Protection Bureau is seeking a record fine against Wells Fargo that could exceed several hundred million dollars for auto insurance and mortgage lending abuses. Reuters spoke to three sources with knowledge of the plans.

The CFPB is readying sanctions alongside the Office of the Comptroller of the Currency (OCC), Wells Fargo’s day-to-day regulator. The agencies are ready to sanction Wells Fargo for layering extra insurance on drivers and collecting commissions on those policies, Reuters reported last month.

Both agencies have also been investigating the bank for wrongly levying fees on mortgage borrowers.

Mick Mulvaney, the CFPB’s acting director, is reportedly seeking to settle both matters with a single fine, likely topping the $100 million the CFPB fined

Wells Fargo in September 2016 to settle its phony accounts scandal.S
ettlement terms have not been finalized but Mulvaney is pushing for a figure as high as $1 billion, said three people with knowledge of the discussions.

Read More