4 ms·
> That money will just go into the treasury. My reading of the article is different. This reads as though $2bn of the $3.7bn was to go directly to the consumer
by nequo 4y ago
> That money will just go into the treasury.
My reading of the article is different. This reads as though $2bn of the $3.7bn was to go directly to the consumers whom Wells Fargo harmed:
a $3.7 billion settlement with federal regulators, including a record $1.7 billion fine [...] The agreement with the Consumer Financial Protection Bureau includes more than $2 billion in “redress to consumers” [...] The CFPB is ordering Wells Fargo to refund billions of dollars to consumers across the country.
- bb88 4y agoAnd that will be pennies on the dollar for what consumers lost. There should be 1:1 redress + damages. Not just "refunds".
- nequo 4y agoI agree that there is a lot more harm caused than the sheer monetary side of it. Don't do business with Wells Fargo if you can avoid it. But as far as the scale of the redress goes, the CFPB announcement[1] has an assessment of the total harm caused: Wells Fargo had systematic failures in its servicing of automobile loans that resulted in $1.3 billion in harm across more than 11 million accounts. Also a detailed list of how much Wells Fargo is to pay for which group of harmed consumers: Specifically, Wells Fargo will have to pay: More than $1.3 billion in consumer redress for affected auto lending accounts. More than $500 million in consumer redress for affected deposit accounts, including $205 million for illegal surprise overdraft fees. Nearly $200 million in consumer redress for affected mortgage servicing accounts. [1] https://www.consumerfinance.gov/about-us/newsroom/cfpb-orders-wells-fargo-to-pay-37-billion-for-widespread-mismanagement-of-auto-loans-mortgages-and-deposit-accounts/ https://www.consumerfinance.gov/about-us/newsroom/cfpb-order...