If you have/had an account with Wells Fargo

[ljk]

CFPB Orders Wells Fargo to Pay $3.7 Billion for Widespread Mismanagement of Auto Loans, Mortgages, and Deposit Accounts | Consumer Financial Protection Bureau

CFPB is ordering Wells Fargo Bank to pay more than $2 billion in redress to consumers and a $1.7 billion civil penalty for legal violations across several of its largest product lines.

www.consumerfinance.gov

The CFPB order requires Wells Fargo to:

• Provide more than $2 billion in redress to consumers:Wells Fargo will be required to pay redress totaling more than $2 billion to harmed customers. These payments represent refunds of wrongful fees and other charges and compensation for a variety of harms such as frozen bank accounts, illegally repossessed vehicles, and wrongfully foreclosed homes. 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.
• Stop charging surprise overdraft fees: Wells Fargo may not charge overdraft fees for deposit accounts when the consumer had available funds at the time of a purchase or other debit transaction, but then subsequently had a negative balance once the transaction settled. Surprise overdraft fees have been a recurring issue for consumers who can neither reasonably anticipate nor take steps to avoid them.
• Ensure auto loan borrowers receive refunds for certain add-on fees: Wells Fargo must ensure that the unused portion of GAP contracts, a type of debt cancellation contract that covers the remaining amount of the borrower’s auto loan in the case of a major accident or theft, is refunded to the borrower when a loan is paid off or otherwise terminates early.
• Pay $1.7 billion in penalties: Wells Fargo will pay a $1.7 billion penalty to the CFPB, which will be deposited into the CFPB’s victims relief fund.

 

[Frosty]

My truck is financed through them, but I haven’t had any issues with them.

 

[dieselrealtor]

I had a mortgage that was sold to them years ago. I paid a huge chunk to drop the LTV ratio & drop the PMI, they wouldn't allow it. I reviewed the terms of the mortgage & informed them they can't change the terms, they basically told me so what.

Fast forward a couple of years, I receive a check & a letter out of the blue that stated something to the effect that "they weren't quite honest with me" when I had requested the pmi to be dropped.

My guess is they got caught or didn't payoff the right official.

 

[dieselrealtor]

Although, I believe the CFPB is just using this to stuff their own account. I have -0- confidence that much of the money will actually to go those who have suffered loss.

 

[MCgrease08]

I honestly don't understand why anyone would use a mega bank like Wells Fargo, Chase, Bank of America, etc.

There are plenty of good credit unions and regional banks that aren't looking for any possible way to screw you.

 

[Robert Richardson]

I honestly don't understand why anyone would use a mega bank like Wells Fargo, Chase, Bank of America, etc.

There are plenty of good credit unions and regional banks that aren't looking for any possible way to screw you.

I've been with Chase for over 20 years, never lost a dime. Just saying.

 

[Dentoro]

They prolly made 50 billion in wrong fees. They should have been charged 75 billion as a penalty. They will do it again. Legalized extortion. Our bank tried to put us in escrow because we didn’t pay our taxes two weeks before they were due. We had to do all the leg work. It would have locked them in three thousand plus dollars for a year. I wonder how many people didn’t follow through and were put in escrow accounts. If only 50,000 people were put in escrow accounts with 3 grand that would be 150 million locked in the bank for a year. That’s a lot of leverage to lose before you go out of business.

 

[Ingomike]

I honestly don't understand why anyone would use a mega bank like Wells Fargo, Chase, Bank of America, etc.

There are plenty of good credit unions and regional banks that aren't looking for any possible way to screw you.

All those mentioned have cool tools for the connected, you know, those that don’t have ten bucks to pay their part of the pizza but can send the money in seconds via the mega bank apps…

 

[Cameramonkey]

Although, I believe the CFPB is just using this to stuff their own account. I have -0- confidence that much of the money will actually to go those who have suffered loss.

Yep. Like bc any other class action, lawyers get millions for their time, and the consumer walks away with maybe enough to have lunch at McDonald’s.

 

[indyblue]

I honestly don't understand why anyone would use a mega bank like Wells Fargo, Chase, Bank of America, etc.

There are plenty of good credit unions and regional banks that aren't looking for any possible way to screw you.

My loan was sold to them and not by request.

Also when I worked at AT&T the employee perk at the time was no closing cost or origination fees so it was basically free for me to mortgage that way.

 

[dieselrealtor]

I have dealt with a LOT of prequal letters over the past 25 years,
5/3 was the least reliable,
Approved Mortgage was equally as horrible,
Chase & BofA were right behind them.

WF was somewhat reliable most of the time, had one on a 203k (rehab loan) that they were running the buyer through the ringer about a $1000 gift in her account. She finally gave up & paid CASH. How stupid was that on the WF's underwriter part?

 

[ljk]

BOA and WF are the 2 banks I avoid at all costs. But being that big of outfits, they do buyouts all the time, therefore people got pulled into their business unwillingly.

 

[CHCRandy]

BOA and WF have always done me right. BOA refinanced my house many years ago, no appraisal, no fees at all. Saved like $97,000 in interest that day, going from 30 year to a 15 and payment didnt go up. btw.....they called me to refinance.

WF has a free cell phone insurance I find useful, if you pay cell bill with WF credit card.

Chase tried ripping me off so I will not deal with them.

PNC wanted $400 non customer fee to cash a check drawn on their bank. 3% no max.

I like local banks and credit unions though. Teachers CU & Forum CU always been fair to us on auto loans.

 

[Cameramonkey]

BOA and WF have always done me right. BOA refinanced my house many years ago, no appraisal, no fees at all. Saved like $97,000 in interest that day, going from 30 year to a 15 and payment didnt go up. btw.....they called me to refinance.

On a related note, beware of Rocket Mortgage. They hound you with "account reviews" because management pushes their people to try to make money.
In our case we refinanced at the lowest point ever, at the highest property value ever. That allowed us to drop PMI and save a ton.

As recent as 2 months ago they were calling to want to go over our "account situation" and find out what they could do to save us money. There is no way in hell, that refinancing a loan from the high 2s today will save us money since the interest rates have more than doubled, and nearly tripled from our rate.

The wife fell for the first one. "Look, we have to make these calls. do me a favor and agree to a callback later and you can tell me no again then. It hurts our numbers if we dont periodically call you, even if you say no."

The 2nd pass I took the call. I laughed at him when he asked to discuss how they could save us money. "how on earth could you save me money when interest rates have doubled? Even switching to a 15 year I'm still going to pay you guys more that I will today. I'm sorry your managers are making you do this, but please, take me off your list. At least until we are back down in the low 3's. Because you are only harassing us. Yes, I used the correct word for this. By calling us when there is no way you could ever save us money, you are either harassing us at best, or trying to defraud us at worst. You arent trying to take advantage of ignorant customers now are you? [long awkward silence] They only one benefiting on a refi now is your company. So stop. I'm sorry. Thank you and have a nice day. "
(dejected) "You too Mr. Monkey"