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Millions of Wells Fargo customers are in line for relief money after the government found the banking giant violated a host of federal consumer laws between 2011 and 2022. Regulators at the Consumer Financial Protection Bureau have announced how account holders can collect some of the cash.
The details were released about a month after Wells Fargo entered into an agreement with the CFPB just before Christmas 2022. The settlement includes more than $2 billion in reparations to customers who suffered financial losses and an additional $1.7 billion that will go to a victims’ relief fund as part of a civil penalty.
Customers With Wells Fargo Mortgages, Auto Financing and Deposit Accounts Entitled to Relief
The consumer abuses spanned several product lines and affected more than 16 million Wells Fargo accounts, according to the CFPB. The agency says the bank wrongfully foreclosed on homes and repossessed cars; hit customers with erroneous overdraft fees; improperly closed accounts; and slapped some consumers with monthly charges that should have been waived.
Wells Fargo said in a statement that it’s working to address unacceptable practices.
“This far-reaching agreement is an important milestone in our work to transform the operating practices at Wells Fargo and to put these issues behind us,” said Charlie Scharf, Wells Fargo’s CEO. “Our top priority is to continue to build a risk and control infrastructure that reflects the size and complexity of Wells Fargo and run the company in a more controlled, disciplined way.”
Wells Fargo did not respond to a request from Forbes Advisor for additional comment.
The bank has reported that its profits for the fourth quarter of 2022 plunged 50% from a year earlier, partly due to the cost of settlement.
One prominent critic of Wells Fargo says regulators should come down even harder on the company. Sen. Elizabeth Warren (D-Mass.) tweeted in mid-January that the banking giant is “too big to manage.”
“It’s long past time for regulators like Acting Comptroller [of the Currency Michael] Hsu to actually use their authority to break up lawbreaking banks and prevent future harm to consumers once and for all,” Warren said on Twitter.
Next Steps for Wells Fargo Customers
If you believe you fell victim to the abusive or negligent practices described by the CFPB, Wells Fargo must contact you about compensation. Eligible customers may request a check or a credit back to their account.
Some customers have already received their payment. If you believe you’re owed money and have not yet been contacted, you may call Wells Fargo at 844-484-5089, Monday through Friday, from 9 a.m. to 6 p.m. Eastern time. If you don’t receive assistance from the company, you may submit a complaint to the CFPB.
Customers will receive varying amounts of repayment depending on the violation. For instance, customers whose cars were improperly repossessed are entitled to (but not limited to) $4,000 in compensation for expenses and reimbursem*nt of any costs directly associated with the repossession.
Here’s the breakdown of what Wells Fargo must pay out to various categories of customers.
Auto Finance Customers
If you had a car loan through Wells Fargo and your payments weren’t applied correctly, resulting in higher interest payments, late fees or vehicle repossession, you may be entitled to money for damages. Additionally, customers who bought guaranteed asset protection coverage—known as gap insurance—and paid off their car loans early and didn’t receive a refund for the coverage may be entitled to gap fee refunds.
- More than 11 million customer accounts were affected
- They’re owed more than $1.3 billion in remediation
Wells Fargo Deposit Accounts
Customers whose accounts were improperly closed or frozen, falsely charged overdraft fees or mistakenly billed account service fees may be eligible for refunds.
- More than 5 million customers were affected
- They’re owed more than $500 million in remediation
Mortgage Servicing Customers
Wells Fargo made a series of errors that impacted mortgage customers, including incorrectly denying loan modifications to eligible customers, improperly charging fees and miscalculating interest rates on some adjustable-rate mortgages.
- Thousands of customers were affected by mortgage errors
- They’re owed more than $195 million in remediation
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FAQs
If, for whatever reason, you believe you're owed money and the bank has not yet made contact, you may call Wells Fargo at 844-484-5089, Monday through Friday, from 9 a.m. to 6 p.m. Eastern time.
Who qualifies for Wells Fargo settlement? ›
The settlement covers more than 16 million Wells Fargo accounts that were subject to “illegal practices, including misapplied payments, wrongful foreclosures, and incorrect fees and interest charges.” CFPB said. Wells Fargo customers from 2011 to 2022 are potentially covered by the settlement.
Why is Wells Fargo sending checks to customers? ›
If you believe you fell victim to the abusive or negligent practices described by the CFPB, Wells Fargo must contact you about compensation. Eligible customers may request a check or a credit back to their account. Some customers have already received their payment.
Did Wells Fargo repay customers? ›
Wells Fargo has paid refunds of premiums and bank fees to eligible customers with applicable renters and simplified term life insurance policies, among other potential compensation. We have provided remediation to eligible customers with policies opened between December 3, 2008 and November 30, 2016.
How to check Wells Fargo claim? ›
You can view the status of your claim by signing on to Wells Fargo Online®. When we complete our research, you will receive a final resolution letter.
What happens to my money if Wells Fargo closed my account? ›
If you have money in the account at the time it's closed, the bank is required to return it to you minus any outstanding fees. If an automatic deposit goes into that account after it's closed, those funds must also be returned. Typically, the bank will send you a check.
How much are people getting from the Wells Fargo lawsuit? ›
According to a report from CNBC, damages for customers with Wells Fargo bank accounts average around $100 per claim, and mortgage holders who were unable to modify their mortgages to avoid foreclosure are seeing an average of $24,215 per claim.
What to do if Wells Fargo data breach 2024? ›
Contact us immediately at 1-800-TO-WELLS (1-800-869-3557) 24 hours a day, and 7 days a week, if you see discrepancies or unauthorized activity on your Wells Fargo accounts. We will carefully review them for reimbursem*nt in accordance with our policies.
How many customers did Wells Fargo lose? ›
Last December, Wells Fargo agreed to pay $3.7 billion to settle Consumer Financial Protection Bureau allegations of consumer abuses involving 16 million accounts. Amid the scandals, the Federal Reserve Board, the nation's top financial regulator, took the extraordinary step of capping Wells Fargo's asset size.
Is Wells Fargo refunding money? ›
As part of a $3.7 billion settlement, Wells Fargo has agreed to pay more than $2 billion directly to customers harmed by “illegal activity,” ranging from incorrect overdraft fees to wrongful foreclosures, according to the CFPB.
The amount that each harmed consumer will get (or already got) depends on the specifics. For customers whose vehicles were wrongly repossessed, the remediation includes $4,000, but could be higher. For deposit accounts that were wrongly frozen, the settlement calls for $150 for each affected customer.
What did Wells Fargo do to their customers? ›
The Wells Fargo fake accounts scandal was a major financial scandal that shook the banking industry to its core. The bank was revealed to have created fake accounts. Shockingly, these accounts were in the names of its customers. without their knowledge or consent.
How do I get my Wells Fargo settlement money? ›
Remember though, that you can always fill out a claim form online at www.WFSettlement.com. You can also write to Wells Fargo Unauthorized Accounts Settlement, P.O. Box 2594, Faribault, MN 55021-9594 or call 1-866-431-8549 to request that a claim form be mailed to you.
What is the Wells Fargo corruption? ›
Wells Fargo & Company and its subsidiary, Wells Fargo Bank, N.A., have agreed to pay $3 billion to resolve their potential criminal and civil liability stemming from a practice between 2002 and 2016 of pressuring employees to meet unrealistic sales goals that led thousands of employees to provide millions of accounts ...
How do I find out if I owe money to a bank? ›
The easiest way to find a list of all your debts is to check your credit reports. Most creditors report your accounts and payments to the credit bureaus. You can check all of your debts for free by reviewing your free credit report from Experian.
How do I claim my Wells Fargo cash back? ›
Redeem your rewards in a variety of ways at wellsfargo.com/redeem. Sign on to Wells Fargo Online® and redeem rewards for purchases you've already made. Visit a Wells Fargo ATM and redeem in $20 increments with your Wells Fargo ATM or Debit Card. You can also redeem your Wells Fargo Rewards to support disaster relief.
Can I work for Wells Fargo if I owe them money? ›
Yes, it reflects poorly on Wells Fargo as a company. There is a policy for employees that if you have a negative balance on any account, you are subject to termination.
What happens if I have negative balance Wells Fargo? ›
If you do overdraft, we will charge you a fee of $35 each time we pay an overdraft item to your account3, with a limit of three fees per day.
