What's Up with Wells Fargo?
The big bank keeps acting bad
It’s a wonder anyone banks at Wells Fargo anymore as the giant bank is becoming known for breaking the law and deceiving its customers.
Now, the bank faces a $100 million fine for “unsafe and unsound” business practices.
Specifically, the Federal Reserve says, “Wells Fargo & Co.’s deficient oversight enabled the bank to violate U.S. sanctions regulations by providing a trade finance platform to a foreign bank that used the platform to process approximately $532 million in prohibited transactions between 2010 and 2015.”
The most recent fine comes following a $3.7 billion fine levied against the bank for its use of fraudulent and deceptive practices involving millions of consumer accounts.
Back in December 2022, when that fine was levied, consumer advocates pointed out that the big bank was a repeat offender:
“This is not the first time that Wells Fargo has flagrantly violated the law and harmed consumers across its lines of business, including deposit accounts, credit cards, and student loan servicing,” said Rachel Gittleman, Financial Services Outreach Manager at Consumer Federation of America. “Today’s enforcement action illustrates the need for an independent consumer protection agency armed with the resources and tools needed to hold violators of the law accountable, make harmed consumers whole again, and protect the public from future unfair, deceptive, or abusive acts or practices.”
The bottom line: Consumers should consider other banking options — and be wary of Wells Fargo.
Portfolio Recovery Associates Fined $24 Million for Illegal Practices
The Consumer Financial Protection Bureau (CFPB) announced that Portfolio Recover Associates has been ordered to pay $24 million as a result of engaging in illegal debt collection practices.
These practices include collecting on unsubstantiated debt, collecting on debt without providing required documentation and disclosures to consumers, suing or threatening legal action against consumers without offering or possessing required documentation, and suing to collect on debt outside the statute of limitations.