Wells Fargo Faces New $ 250 Million Fine From Regulators, Consumers Affairs Reports
Wells Fargo is back in the spotlight. The Office of the Comptroller of the Currency (OCC) fined the bank $ 250 million, accusing it of engaging in unsafe or unhealthy practices related to its 2018 compliance consent order.
“Wells Fargo did not meet the requirements of the OCC’s 2018 action against the bank. This is unacceptable, ”said Acting Currency Comptroller Michael J. Hsu.
The regulator has also placed limits on the bank’s future activities until it addresses specific issues in its mortgage management department. In 2018, Wells Fargo agreed to pay a $ 1 billion fine after regulators said it failed to deliver on promised adjustments to customer interest rates on mortgages and auto loans. He was also accused of causing car loan customers to buy unnecessary insurance policies.
“The OCC will continue to use all the tools at its disposal, including trade restrictions, to ensure that domestic banks deal with issues in a timely manner, treat customers fairly, and operate in a safe and sound manner,” Hsu said. .
Work on your reputation
Wells Fargo has worked since 2016 to restore its reputation with consumers after its employees discovered they were opening credit cards and checking accounts on behalf of customers without their knowledge or consent. An analysis of reviews posted on Consumer Affairs shows that the bank is making progress in this area, but reviews remain mixed.
Lawrence, from Florence, Ariz., Is one of the consumers who recently gave the bank a 5-star rating, praising improvements in the way deposits and transfers are processed.
“I have five accounts and I can see and work with them all, including credit card accounts and personal loans,” Lawrence wrote. “Direct deposit is very easy. And you are protected against fraud. No need to call them anymore because you can chat 24/7 with a real person.
But Liza, from Edgewater, Florida, had a very different experience. She told us she had a merchant account and found customer service to be lacking.
“Every time I try to reach someone I get a customer service agent who can’t get answers and most of the time I never even get a callback,” she wrote in a article. “I am extremely frustrated and disappointed and frankly ready to hire a lawyer.”
More work to do
Regarding the latest OCC action, Wells Fargo CEO Charlie Scharf said the bank is striving to get it right and has recently focused on areas chosen by the OCC.
“OCC’s actions today indicate the work we need to continue to do to address important and long-standing gaps,” he said.
The OCC also issued a cease and desist order against the bank that requires Wells Fargo to “take broad and comprehensive corrective action” to improve the execution, risk management and oversight of the mitigation program. bank losses.
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