The Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency are fining Wells Fargo $1 billion for forcing customers into car insurance and charging mortgage borrowers unfair fees, CNNMoney staffer Donna Borak reports.
Last year, Wells Fargo said some mortgage borrowers were wrongly charged for missing a deadline to lock in promised interest rates. The reason for the delay was the bank’s fault and no charges should’ve been issued.
The two regulators provided a road map for Wells to fix practices that led to consumer abuses, including the creation of a compliance committee to oversee the process.
The bank will now be required to update regulators on its progress. Wells must also show how it plans to identify customers hurt by its misconduct and explain plans to compensate them.
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