WASHINGTON—The CFPB has hit Wells Fargo with a $1-billion fine — a record for the agency — in punishment for the banks’ actions in its mortgage and auto loan businesses.
The fine was assessed in a coordinated action with the Office of the Comptroller of the Currency (OCC). As described in the consent order, the Bureau found that Wells Fargo violated the Consumer Financial Protection Act (CFPA) in the way it administered a mandatory insurance program related to its auto loans, the CFPB stated.
The Bureau also found that Wells Fargo violated the CFPA in how it charged certain borrowers for mortgage interest rate-lock extensions.
Under the terms of the consent orders, Wells Fargo will remediate harmed consumers and undertake certain activities related to its risk management and compliance management. The Bureau assessed a $1-billion penalty against the bank and credited the $500 million penalty collected by the OCC toward the satisfaction of its fine.
“I am especially pleased that we were able to work closely and effectively with our colleagues at the OCC, and I appreciate the key role they played in the negotiations,” said Bureau Acting Director Mick Mulvaney. “As to the terms of the settlement: we have said all along that we will enforce the law. That is what we did here.”
The $1-billion fine is not related to the $185-milion in fines the bank has already paid related to a bogus account opening scandal that involved approximately 3.5 million customers.
The Bureau’s Wells Fargo consent order is available here.