Millions of Wells Fargo customers are entitled to receive damage payments for a litany of wrongdoings committed by the institution over the past decade.
In its role as a federal watchdog, the Consumer Financial Protection Bureau (CFPB) whacked Wells Fargo with a $3.7 billion penalty in December 2022 — with $2 billion due to consumers.
“Wells Fargo’s rinse-repeat cycle of violating the law has harmed millions of American families,” said CFPB Director Rohit Chopra at the time. “This is an important initial step for accountability and long-term reform of this repeat offender.”
CFPB officials have since announced how victims of Wells Fargo’s consumer abuse can receive their fair share in settlement compensation. This article looks at all Wells Fargo customers need to know about the landmark ruling, who is eligible for compensation, and how to get the money owed.
The Final Verdict and Settlement
On December 20, 2022, Wells Fargo was found to have illegally assessed fees and interest charges on auto and mortgage loans, misdirected loan payments, and wrongly repossessed consumers’ cars. The bank also sprung unlawful surprise overdraft fees on its customers and tacked on other incorrect charges to checking and savings accounts.
This is not the first time the CFPB has caught Wells Fargo for foul play. In previous years, the federal watchdog penalized the banking titan for taking mortgage kickbacks, mishandling student loans, holding fake accounts, and misusing auto loans.
“We and our regulators have identified a series of unacceptable practices that we have been working systematically to change and provide customer remediation where warranted,” Wells Fargo’s CEO Charlie Scharf said of the watchdog’s enforcement action.
“This far-reaching agreement is an important milestone in our work to transform the operating practices at Wells Fargo and to put these issues behind us. Our top priority is to continue to build a risk and control infrastructure that reflects the size and complexity of Wells Fargo and run the company in a more controlled, disciplined way.”
The $2 Billion Wells Fargo Settlement: How to Claim What You’re Owed
Who is Affected
Wells Fargo’s maligned business practices have affected a significant portion of the population, with one in three American households being customers of the bank.
If you have a Wells Fargo account, it is important to be aware of the damage you may have suffered, how current payments are now being distributed, and to remain vigilant for further issues in the future. The following information will help inform you if you were affected, what steps you should take, and the level of compensation you may expect.
In total, more than 16 million accounts at the bank were subject to illegal activity.
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Auto Loan Customers
Some customers’ loan payments were not applied correctly to their loan balances. This, in turn, caused higher interest charges, late fees, and wrongful repossessions. In some instances where customers paid for GAP coverage, the bank did not refund money owed if the loan was paid off early. Over 11 million accounts were impacted by this fraudulent activity, and the holders of these accounts are owed $1.3 billion in total.
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Mortgage Loan Borrowers
Wells Fargo unfairly prevented some borrowers from making modifications to their loans in order to avoid foreclosure. The bank also wrongly reported some customers as deceased, and overstated attorney fees led to denied applications and resulted in thousands of wrongful foreclosure actions.
Thousands of customers were impacted by mortgage errors and are owed around $200 million in compensation.
Wells Fargo Deposit Accounts
Some Wells Fargo deposit accounts were hit with extra overdraft, withdrawal, and monthly fees. At other times, the bank unjustifiably froze customer accounts for weeks on the pretense of preventing fraudulent deposits.
Over 5 million accounts were impacted by this misconduct and are owed over $500 million in compensation.
How to Claim Your Share of Settlement Proceeds
If you believe you have suffered from the above instances of abuse and/or negligence, Wells Fargo is legally obligated to contact you regarding compensation. No action is necessary on the victims’ part to receive what they are owed, and some have already received their payment.
If, for whatever reason, you believe you’re owed money and the bank has not yet made contact, you may call Wells Fargo at 844-484-5089, Monday through Friday, from 9 a.m. to 6 p.m. Eastern time. Those who don’t receive assistance from the bank may submit a complaint to the CFPB.
Damage payment will vary depending on the relevant violation. For example, those whose cars were inappropriately repossessed are entitled to a minimum of $4,000 compensation for any associated costs.
The CFPB warns that criminals may exploit this opportunity to defraud Wells Fargo victims. If you are contacted by someone who claims they can assist you in getting your compensation and/or requests an electronic transfer to do so, realize this is a scam. If you are contacted by fraudsters, get in touch with the CFPB right away: (855) 411-2372, 8 a.m. to 8 p.m. ET, Monday through Friday.
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Disclaimer: This article is intended for informational purposes only, and should not be considered financial advice. You should consult a financial professional before making any major financial decisions.
Frequently Asked Questions
What was the Wells Fargo CFPB settlement about?
On December 20, 2022, the Consumer Financial Protection Bureau ordered Wells Fargo to pay more than $2 billion in redress to consumers and a $1.7 billion civil penalty. The order covered harm in auto lending, consumer deposit accounts and mortgage lending, including improper fees, interest charges and wrongful vehicle repossessions.
Is the Wells Fargo CFPB consent order still in effect?
No. Wells Fargo announced on January 28, 2025 that its 2022 CFPB consent order had terminated, and the CFPB lists the action as terminated. If you have questions about a payment you received or expected, contact Wells Fargo directly using contact details from its official website.
How can I avoid scams related to the Wells Fargo settlement?
Be suspicious of anyone who contacts you claiming they can help you collect settlement money for a fee. Legitimate redress programs don’t require you to pay to receive money owed to you, and you should never share bank account details or passwords with an unsolicited caller, texter or emailer. If you’re unsure, contact Wells Fargo or the CFPB yourself using contact information from their official websites.
What can I do if I think a bank harmed me and I was never compensated?
Start by contacting the bank in writing and keeping records of your account, fees and correspondence. If the issue isn’t resolved, you can submit a complaint to the Consumer Financial Protection Bureau at consumerfinance.gov, which forwards complaints to the company and tracks responses. For larger losses, you may also want to speak with an attorney.
About the author
Contributing Writer, Wealthtender
Liam Gibson is a Taiwan-based freelance journalist who covers tech, geopolitics, and finance. He has written for Al Jazeera, Nikkei Asia Review, South China Morning Post, Straits Times, National Interest, and has appeared in Fortune Magazine, and several other international media outlets.