The settlement comes two years after Wells Fargo was found to have opened millions of accounts in customers’ names that they did not know about or want.
Wells Fargo charged improper fees and imposed other unwanted expenses on customers in its auto and home lending divisions, CFPB and OCC said. By some estimates more than a million customers were affected.
“For more than a year and a half, we have made progress on strengthening operational processes, internal controls, compliance and oversight, and delivering on our promise to review all of our practices and make things right for our customers,” Timothy J. Sloan, president and chief executive officer of Wells Fargo, said in a statement.
The settlement represents CFPB’s first enforcement action under Mulvaney, a critic of the bureau who requested zero additional funding for it.
“Anybody who was concerned that we may not be interested in enforcing the law should probably get a different message from this settlement,” Mulvaney said. “We’re going to enforce the law and there may be places where I interpret that differently than my predecessor in terms of pushing the envelope but I don’t think anyone would contend the action against Wells was pushing the envelope.”