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Wells Fargo To Pay $250 Million Fine

Wells Fargo has agreed to pay a $250 million fine imposed by a U.S federal banking regulator.

Thursday’s announcement by the Office of the Comptroller of the Currency (OCC) charges that the bank failed to correct deficiencies related to the bank’s loss mitigation activities and other violations.

“Wells Fargo has not met the requirements of the OCC’s 2018 action against the bank. This is unacceptable,” said acting Comptroller of the Currency Michael. J Hsu.

The 2018 consent agreement, in which the bank agreed to pay $1 billion for failing to adjust customers’ interest rates on mortgages and auto loans, forced millions of customers to purchase unnecessary insurance products. Those lapses cost Wells Fargo customers millions of dollars and in some cases their cars or homes.

The bank stated that recent developments represent both progress and work left to do on complex issues.

“Building an appropriate risk and control infrastructure has been and remains Wells Fargo’s top priority,” said Charlie Scharf, Wells Fargo’s CEO. “The OCC’s actions today point to work we must continue to do to address significant, longstanding deficiencies.”

Hsu says, “The OCC will continue to use all the tools at our disposal, including business restrictions, to ensure that national banks address problems in a timely manner, treat customers fairly, and operate in a safe and sound manner.