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Home / Business / Alabama Receives Wells Fargo Settlement of $ 7.9 Million from $ 575 Million

Alabama Receives Wells Fargo Settlement of $ 7.9 Million from $ 575 Million



Attorney General Steve Marshall today announced a $ 575 million settlement between the 50 states and the District of Columbia and Wells Fargo Bank N.A.

Settlement Eliminates Bank Claims Against Consumer Protection Laws of Alabama and Other States. Alabama will receive $ 7.9 million to cover legal fees and support the funding of the Attorney General's consumer protection efforts.

The agreement resolves allegations that Wells Fargo violated these laws:

Opening of millions of dollars of unauthorized accounts and customer registration for online banking services without their knowledge or consent

Improper reference from customers for third-party tenants and life insurance policies

Unauthorized car loan customers for coercive and unnecessary collateral insurance [1

9659002] Without ensuring that customers have received reimbursements for unpaid premiums for certain optional motor vehicle financial products

Extension of mortgage rates

Wells Fargo said Wells Fargo will also set up a consumer indemnity program. The program will allow consumers who have not already been used by other existing restitution programs to request that their complaint investigation be reviewed by a bank escalation team for possible release.

To date, this comparison represents the most important task of a National Bank of prosecutors who are working without a federal prosecutor for prosecution.

Over 3.5 million Wells Fargo accounts were opened, funds transferred, credit card applications filed, and debit cards issued without the customer's knowledge or approval. The bank also identified 528,000 online bills nationwide, possibly resulting from the Bank's unfair selling practices.

In addition, Wells Fargo unlawfully filed more than 6,500 tenant insurance policies and / or simplified life insurance and customer payment accounts without the knowledge or consent of customers.

The states alleged that Wells Fargo imposed aggressive and unrealistic sales targets on bank employees and introduced an incentive compensation program that would allow employees to qualify for the loan by selling certain products to customers. States also claim that the Bank's sales goals and incentive programs cause employees to comply with inappropriate selling practices in order to achieve these sales goals and receive financial rewards.

States claim that these sales goals are becoming increasingly difficult to achieve. Employees they had not met faced a potential dismissal and career-critical criticism from their superiors.

Wells Fargo has also been accused of unlawfully collecting premiums, interest and penalties for compulsory insurance coverage for over 2 million car finance customers. Customers already have current insurance and complaints, they claim. The bank has committed to overhaul some 850,000 auto finance customers over $ 385 million. The remedy includes payments to more than 51,000 customers whose vehicles have been repossessed.

The Bank has also agreed to pay more than $ 37 million in reimbursement to certain auto finance customers, which the bank does not ensure they will receive unrecovered parts of the company. CAP) under vehicle financing arrangements.

Wells Fargo has refunded or approved more than $ 100 million in interest extension lock fees that were not properly raised by residential mortgage customers.

Wells Fargo previously granted approval orders to federal agencies – including the OCC and the CFPB – regarding his alleged conduct. Wells Fargo has pledged or provided over $ 600 million to consumers under its agreements with the OCC and the CFPB, as well as by completing a class-action lawsuit against consumers, and will pay the federal government $ 1 billion in civil sanctions numbers . In addition, the Bank must strengthen its corporate governance and controls on behalf of the Federal Reserve and is not currently involved in overstepping its total assets.

The Bank has agreed to launch a program through which consumers advertise within 60 days I believe that they were affected by the Bank's behavior but were not within the scope of the previous restitution programs. You can contact Wells Fargo to investigate possible remedies. Wells Fargo will set up and maintain a website that consumers can use to access the program, and provide governments with regular reports on ongoing restitution efforts.

More information about the Reparation Review Program, including its website address and escalation phone numbers, will be available on or before February 26, 2019.

Read below the states agreement with Wells Fargo.


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