Bank Will Fork Over $3.7 Billion After ‘Thousands’ Wrongly Lose Homes And Vehicles | Eastern North Carolina Now

    Publisher's Note: This post appears here courtesy of the The Daily Wire. The author of this post is Ben Zeisloft.

    Wells Fargo will pay $1.7 billion in civil penalties and $2 billion in redress after the bank carried out a number of abuses concerning mortgages and consumer accounts.

    According to a press release from the Consumer Financial Protection Bureau, the company illegally assessed fees and interest charges on various loans, wrongly repossessed cars, and misapplied mortgage payments, leading "thousands of customers" to lose their vehicles and homes. The bank also "charged consumers unlawful surprise overdraft fees and applied other incorrect charges to checking and savings accounts" in actions that affected 16 million users.

    "Wells Fargo's rinse-repeat cycle of violating the law has harmed millions of American families," Consumer Financial Protection Bureau Director Rohit Chopra remarked, adding that his agency is "ordering Wells Fargo to refund billions of dollars to consumers across the country."

    The $3.7 billion fine marks the largest in agency history.

    Wells Fargo improperly denied thousands of mortgage loan modifications over seven years, leading some customers to lose their homes even as the bank was aware of the problem. The bank also charged surprise overdraft fees when account holders had enough deposits to cover the transactions.

    Of the $2 billion in redress, $1.3 billion will be used for affected vehicle loans, $500 million for affected deposit accounts, and $200 million for affected mortgage accounts. The $1.7 billion penalty will be used for a victims' relief fund managed by the Consumer Financial Protection Bureau. Wells Fargo was also ordered to stop charging surprise fees and address oversights with respect to vehicle loans.

    The news comes as inflationary pressures and rising interest rates increase the number of defaults on various types of consumer debt. The number of people behind on their car payments has approached pre-recession levels, while defaults have soared past levels seen in 2019 for low-income consumers, according to data from Fitch Ratings obtained by NBC News.

    Higher mortgage rates have contributed to plummeting demand in the housing market, even as fewer families can afford a home. Only 42% of American families earning $90,000 per year were able to afford new and existing properties sold between the beginning of July and the end of September, according to data from the National Association of Home Builders, corresponding to aggressive rate hike decisions from the Federal Reserve meant to cut inflation.

    Chopra characterized Wells Fargo as a "repeat offender." Indeed, the bank agreed to pay $3 billion in February 2020 after employees were pressured to "meet unrealistic sales goals that led thousands of employees to provide millions of accounts or products to customers under false pretenses or without consent, often by creating false records or misusing customers' identities," according to a statement from the Justice Department.

    Wells Fargo faced criticism earlier this year after a report from the New York Times found executives had conducted fake interviews with female and minority applicants to meet diversity, equity, and inclusion thresholds. The company had paid $7.8 million in August 2020 to settle a claim from the Department of Labor asserting that the bank discriminated against more than 34,000 African-American applicants for banking, customer sales, and administrative support positions, as well as over 300 female applicants for administrative support positions.

poll#169
Considering how abjectly corrupt and civilly abusive the Left has become regarding the corrosive effect of their elected leaders; their entrenched and ruling bureaucracy; employing their failed Education Industry as Indoctrinators; their collusive private sector operators, such as the terminally discredited Legacy Media and Big Tech censorship of Free Speech: What will be the best course forward for hardworking Middle Americans, including the Patriot Class?
  Withdraw from society, go underground and plan for a resurgence when it is feasible to do so.
  Work within the confines of better policy by the People's government, once good sense and sanity is restored in the electorate at large, to achieve such.
  Are you a crazy, nut-job Insurrectionist? Everything is perfect within our plan to achieve our intended goals for the Socialist Left.
  Secession to form a true Constitutional Republic.
203 total vote(s)     What's your Opinion?

Go Back

HbAD0

Latest Op-Ed & Politics

Locals and Groundhog Day enthusiasts alike were caught off-guard today, as the eponymous groundhog, Punxsutawney Phil, emerged from his burrow and declared to the crowd gathered at Gobbler's Knob that there was a cache of documents marked "Classified" in his underground home.
A Catholic pro-life activist facing 11 years in prison for allegedly violating a federal law prohibiting people from blocking others from entering an abortion clinic was acquitted on Monday following a week-long trial.
Chicago Mayor Lori Lightfoot was slammed after video showed her dancing in the street in Chicago’s Lunar New Year parade Sunday.
Several users of the remarkable software ChatGPT are reporting an apparent glitch that occurs whenever someone asks the AI to say something nice about Donald Trump.
A Senate Democrat is joining Republican colleagues in calling for an investigation into the suspected Chinese spy balloon currently hovering over the United States.
County boards of elections in North Carolina regularly remove voter registrations of people whom they confirm have died or moved out of the county

HbAD1

Federal prosecutors requested that former FTX CEO Sam Bankman-Fried become subject to more restrictions during his pretrial release after he allegedly tried to tamper with a witness through the encrypted messaging platform Signal.
The N.C. Court of Appeals will decide in Zander v. Orange County whether the county must refund millions of dollars in school impact fees collected since 2009.
Secretary of State Antony Blinken reportedly told China’s Foreign Minister Wang Yi in a call on Friday that “the presence” of a suspected Chinese spy balloon in “U.S. airspace is a clear violation of U.S. sovereignty and international law.”
Local progressive and Anitfa member Declan Johnson has started to question his commitment to the communist revolution over concerns about a potential lack of gluten-free bread lines.

HbAD2

Young workers in Western nations are leaving their jobs at increasing levels over a desire to work for companies they believe are committed to fighting climate change.

HbAD3

 
Back to Top