The bank ended up paying $20 million in fines to the OCC and made restitution of over $10 million to wronged service members.ĭecember 2016: Wells Fargo fails its ‘living will’ test The bank did not limit interest rates to 6% (as is required by law), failed to tell courts the borrowers were active-duty when it asked for evictions, and failed to obtain court papers prior to repossessing cars. The Department of Justice slapped Wells Fargo’s wrist for improperly repossessing the cars of members of the military. September 2016: Improperly repossessing service members’ cars In a class action suit, Wells Fargo agreed to pay $142 million to the affected parties, which included millions of customers. Later that month Wells Fargo said it would stop unreasonable sales goals. In the aftermath of this scandal, then-CEO John Stumpf was fired and had $41 million in compensation clawed back. This kind of sales pressure was known to cause similar issues at large banks, academic research had shown.
The bank had fired 5,300 low-level employees for creating these accounts under extreme sales pressure. Wells Fargo’s public woes kicked off with $185 million in fines from the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency, and the City and County of Los Angeles for the creation of 1.5 million fake deposit accounts and more than 500,000 fake credit cards, all in customers’ names and without their permission. Here’s a chronological overview of the biggest ones, starting with the fake account scandal in which millions of accounts were created without customers’ permission. The company has been mired in a variety of scandals, many of which involve overzealous sales practices to hit lofty targets. Wells Fargo ( WFC) CEO Tim Sloan is testifying in front of the House Financial Services Committee Tuesday at a hearing called “Holding Megabanks Accountable: An Examination of Wells Fargo’s Pattern of Consumer Abuses.” stock is underperforming Tuesday pre-market as Sloan prepares to appear before a House committee focused on what it's calling a 'pattern of consumer abuses.' Photographer: Andrew Harrer/Bloomberg via Getty Images
Tim Sloan, president and chief executive officer of Wells Fargo & Co., arrives for a House Financial Services Committee hearing in Washington, D.C., U.S., on Tuesday, March 12, 2019.
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