Wells Fargo begins consumer redress program

by Ryan Smith28 Feb 2019

Wells Fargo has begun its consumer redress review program, a requirement of the scandal-plagued bank’s recent $575 million settlement with all 50 states and the District of Columbia over violations of consumer protection laws.

The program allows customers affected by the bank’s numerous scandals to seek relief, provided they haven’t already taken advantage of other remediation programs already in place.

Wells Fargo has been at the center of numerous scandals over the past few years, starting in 2017 with the revelation that the bank had opened as many as 3.5 million unauthorized customer accounts. The bank also enrolled more than half a million customers in an online bill-payment service without authorization.

Wells Fargo also charged mortgage customers improper rate-lock fees, charged auto-loan customers for unnecessary insurance, and failed to ensure that customers received refunds of unearned premiums on optional auto-finance products. The banking giant has also been the subject of numerous lawsuits accusing it of discriminatory lending practices.

“Through this program, all affected customers have an opportunity to have their claims reviewed,” said Maryland Attorney General Brian E. Frosh. “Not one customer who was wronged should slip through the cracks.”

“The consumer redress review program is an important avenue for consumers seeking the relief they are entitled to for Wells Fargo’s improper conduct,” said Pennsylvania Attorney General Josh Shapiro. “I encourage Pennsylvanians with questions or concerns about the bank’s remediation programs to visit Wells Fargo’s website or call its escalation team. I am grateful for the hard work of my Bureau of Consumer Protection and attorneys general across the country who came together to hold Wells Fargo accountable and change corporate conduct to protect consumers.”



Should CFPB have more supervision over credit agencies?