Drawing on both public material and confidential information obtained during its review, the bank’s regulator, the Office of the Comptroller of the Currency, said it had uncovered “an extensive
and pervasive pattern and practice of discriminatory and illegal credit practices across multiple lines of business within the bank, resulting in significant harm to large numbers of consumers.”
The regulatory action came on the same day that the bank agreed to pay $110 million to
settle a class-action lawsuit over its creation of unauthorized customer accounts.
Wells Fargo said it had agreed to resolve those cases outside arbitration, as part of
this proposed settlement, “in order to move forward and avoid continuing litigation.”
The comptroller’s office criticized Wells Fargo’s creation of unauthorized accounts in its report,
but it also pointed to at least nine other examples of what it called “egregious” violations by Wells Fargo that harmed borrowers.
Citing Misdeeds, U. S. Gives Wells Fargo Failing Grade on Lending -
By STACY COWLEYMARCH 28, 2017
In the latest blow to Wells Fargo’s efforts to rebuild its reputation after months of turmoil,
the bank on Tuesday received a failing score on community lending from its federal regulator.
The bank paid $185 million in September to settle charges brought by the Los Angeles city attorney and by federal regulators, including the Office of the Comptroller of the Currency,
but several criminal investigations, including an inquiry by the Justice Department, are continuing.