CHARLESTON, W.Va. — A multistate settlement has been reached in a lawsuit against Wells Fargo Bank.
West Virginia Attorney General Patrick Morrisey announced Friday the $575 million settlement to resolve claims that the bank violated state consumer protection laws.
The states alleged that Wells Fargo made many moves in customer accounts without them knowing. The alleged acts included opening millions of unauthorized accounts and enrolling customers in online banking services without their knowledge or consent and improperly referring customers for enrollment in third-party renters and life insurance policies.
In a release by the Attorney General’s office, they say the settlement represents the most significant engagement involving a national bank by state attorneys general acting without a federal law enforcement partner.
Morrisey in a statement, “Improper business practices cannot be tolerated. This settlement sends a stern message to businesses that consumer protection laws can and will be upheld in every state.”
As a result of the settlement, the bank has agreed to provide remediation of more than $385 million to approximately 850,000 auto finance customers, including payments to more than 51,000 customers whose cars were repossessed and refund more than $100 million in mortgage rate lock extension fees to affected customers.
Wells Fargo Bank will also create a consumer redress review program through which consumers who have not been made whole through other restitution programs can seek review of their inquiry or complaint about possible relief.