Wells Fargo & Co. has reached an agreement with all 50 state Attorneys General and the District of Columbia regarding mortgage interest rate lock issues, under which it will pay $575 million to settle civil claims.
The company has been discussing these issues with federal regulators and is paying back consumers for their losses. Also, Wells faced regulatory scrutiny for its retail sales practices, auto collateral protection insurance and Guaranteed Asset-Auto Protection matters.
“This agreement underscores our serious commitment to making things right in regard to past issues as we work to build a better bank,” said Tim Sloan, chief executive officer and president of Wells Fargo.
Under the terms of the agreement, Wells Fargo will:
- Pay a total of $575 million to resolve civil claims that the state attorneys general otherwise might bring arising out of or related to the covered conduct prior to the effective date of the agreement.
- Maintain designated teams to review and respond to customer inquiries on the covered issues.
- Create and maintain a website that describes the issues and Wells Fargo’s existing remediation efforts and identifies contact information for consumers to use if they have any questions or concerns about the covered issues.
Wells Fargo will also provide periodic reports to the states on the progress of its existing remediation efforts.
As of the end of third quarter 2018 the company had accrued $400 million of the settlement amount and expects to accrue the remaining $175 million in fourth quarter 2018.
Under the terms of the agreement, Wells Fargo will:
- Pay a total of $575 million to resolve civil claims that the state attorneys general otherwise might bring arising out of or related to the covered conduct prior to the effective date of the agreement.
- Maintain designated teams to review and respond to customer inquiries on the covered issues.
- Create and maintain a website that describes the issues and Wells Fargo’s existing remediation efforts and identifies contact information for consumers to use if they have any questions or concerns about the covered issues.
Wells Fargo will also provide periodic reports to the states on the progress of its existing remediation efforts. For a related article, click here.
