Arizona to get $37.1M under settlement with Wells Fargo

Arizona to get $37.1M under settlement with Wells Fargo

Arizona to get $37.1M under settlement with Wells Fargo

Nebraska's share of the settlement is $5,210,423.

As part of the latest agreement with the states, Well Fargo said it will also designate teams to review customer inquiries and create a website that describes the bank's remediation efforts.

Two years ago, Wells Fargo agreed to pay $190 million to settle federal government claims that the bank created phony customer account, and improperly referred and charged customers for various financial services products.

That's when the bank admitted its employees opened as many as 3.5 million fake bank and credit card accounts without customers' knowledge. Wells Fargo has agreed to provide remediation of more than $385 million to approximately 850,000 auto finance customers.

Prosecutors say Wells Fargo, and the third-party company who managed the auto loans, did not properly verify whether customers already had auto insurance, and did not process CPI cancellations in a timely manner, resulting in more than 51,000 vehicles being repossessed between 2005 and 2016.

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Reuters reported that the settlement would also cover allegations of improper insurance referrals and auto loan insurance, in addition to wrong mortgage rate lock extension fees.

Wells Fargo has previously entered consent orders with federal authorities - including the Office of the Comptroller of the Currency (OCC) and the Consumer Financial Protection Bureau (CFPB) - related to its alleged conduct. The federal reserve will not allow Wells Fargo to grow its assets until it is satisfied that the bank has cleaned up its act.

As part of its settlement with the states, Wells Fargo has agreed to implement within 60 days a program through which consumers who believe they were affected by the bank's conduct, but fell outside the prior restitution programs, can contact Wells Fargo to be reviewed for potential redress.

Wells Fargo has been ordered to set up a dedicated website and phone number by February 26, 2019, for its affected banking, insurance, auto loan and home mortgage customers to file claims for refunds in this settlement.

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