Wells Fargo to Pay $575 Million to Settle Customer Harm Claims

American multinational Wells Fargo & Co, have to pay $575m to settle state-level claims over sales practices which was due to a lack of compliance controls. This latest scandal adds to the series of scandals, which are been going on for the last two years.

This settlement among the 50 states and District of Columbia resolves state investigation into the Wells Fargo’s practices from 2002 to 2017.

California Attorney-General Xavier Becerra made a statement that “the customers of Wells Fargo, entrusted the bank with their livelihood, dreams and their savings. Instead of safeguarding them, the bank exploited this, by signing them up for products – from bank accounts to insurance, which the customers never wanted”

Wells Fargo has already paid a lot in penalties this year which amounted to about $3.1 billion.

Earlier in the year the Federal Reserve, has already, imposed an unprecedented growth ban on Wells Fargo until it can demonstrate that it has fixed its mistakes and has enforced compliance controls.

Date: 28th December 2018

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