22nd April 2018 |
by Alex Spanko |
HECM, News, reverse mortgage, Wells Fargo
Wells Fargo (NYSE: WFC) has to pay a $ 1 billion fine for its car loan and interest rate cutbacks, the consumer protection agency announced late last week.
The colossal punishment comes when the CFPB has generally eased its enforcement efforts under the Trump administration and new acting director Mick Mulvaney, and received support from both sides of the aisle. The original action, undertaken by both the CFPB and the Office of the Comptroller of the Currency, began under the Obama administration and found that Wells Fargo violated consumer protection law.
"Fraud is fraud and theft is theft" Deputy Jeb Hensarling, the Texas Republican who heads the House Financial Services Committee, said in a statement. "What has happened to many consumers in Wells Fargo for far too many years can not be described otherwise: one billion dollars is one of the biggest civilian penalties ever imposed on a bank, and on the basis of all the evidence, it was well deserved . "
In a rare moment of approval, Rep. Maxine Waters, Member of the Commission, also praised the action
" Wells Fargo has a terrible track record of harming consumers and deserves all the punishment they have received and more, "said the Californian Democrat in a statement, though she also took the opportunity to beat Mulvaney's leadership.
The Francisco-based bank giant, which has been scandalized in recent years, received a $ 500 million loan from the CFPB for a fine already imposed by the OCC.
"Regarding the conditions of the settlement: We have been saying all the time that we will enforce the law, we did that here," Mulvaney said in a statement.
Written by Alex Spanko