The bank agreed to pay $185 million in fines, along with $5 million to refund customers. Wells Fargo is being slapped with the largest penalty since the CFPB was founded in 2011. Related: ATM and overdraft fees top $6 billion at the big 3 banks The CFPB said Wells Fargo will pay "full restitutions to all victims." Roughly 14,000 of those accounts incurred over $400,000 in fees, including annual fees, interest charges and overdraft-protection fees. The CFPB described this practice as "widespread." Customers were being charged for insufficient funds or overdraft fees - because there wasn't enough money in their original accounts.Īdditionally, Wells Fargo employees also submitted applications for 565,443 credit card accounts without their customers' knowledge or consent. The way it worked was that employees moved funds from customers' existing accounts into newly-created ones without their knowledge or consent, regulators say. An analysis conducted by a consulting firm hired by Wells Fargo concluded that bank employees opened over 1.5 million deposit accounts that may not have been authorized. Related: Who owns Wells Fargo? You, me and Warren Buffett Employees went so far as to create phony PIN numbers and fake email addresses to enroll customers in online banking services, the CFPB said.
Wells Fargo confirmed to CNNMoney that it had fired 5,300 employees over the last few years related to the shady behavior.
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