Wells Fargo Bank, the US consumer financial protection agency, said that Wells Fargo Bank agreed to reach a settlement agreement of US $3.7 billion with the agency on mismanagement, which is related to mortgage loans, auto loans and overdraft fees. However, the bank did not accept CFPB's accusation against it.

In a statement, CFPB was ordered to pay a record $1.7 billion in civil fines and a record fee of "more than $2 billion in compensation to consumers". Among them, the US $1.7 billion fine was used to make up for the unfair treatment of millions of customers over the years, leading some people to lose their charges against cars or houses; More than $2 billion in compensation will remedy "generally poorly managed" losses on auto loans, mortgages and deposit accounts.

CFPB's illegal behavior has caused billions of dollars of economic losses to its customers, and thousands of customers have lost their cars and houses. Consumers were illegally charged the fees and interest of cars and mortgages, their cars were wrongly repossessed, and banks misappropriated cars and mortgages.

Wells Fargo said in its statement that many "necessary actions" of banks related to the settlement have been completed. Regarding the impact of the settlement on the company's performance, the bank said that the fourth quarter's expenditure would include an operating loss of $3.5 billion, or $2.8 billion after tax. After the news was released, Wells Fargo's share price rose in the morning, then fell, and now fell 1.12%, reported to be 41.34 dollars.

Last year, Wells Fargo told investors that it was meeting the requirements of several US regulators "may encounter problems or delays". Wells Fargo set aside $2 billion in the third quarter of this year for legal, regulatory and customer remediation, triggering speculation that a settlement is imminent.

Rohit Chopra, director of the CFPB, said in a statement: Wells Fargo Bank continued to break the law, harming millions of American families. The CFPB asked Wells Fargo to return billions of dollars to consumers across the country. This is an important first step in the long-term reform of the bank, which requires accountability and repeated mistakes.

Under the leadership of Wells Fargo, CEO Charlie Scharf has been trying to solve a series of scandals since 2016. Later, Wells Fargo's cross business problems surfaced, leading to the dismissal of two chief executives and some expensive penalties, including the Federal Reserve's restrictions on corporate assets.

Scharf warned in October that the regulators accused Wells Fargo of "not over yet": we and the regulators have confirmed a series of unacceptable practices. We have been making systematic efforts to change and provide remedial measures for customers when necessary. This far-reaching agreement is an important milestone for us to change the operation mode of Wells Fargo Bank and truly solve these problems.

According to CFPB, in terms of auto loans, Wells Fargo Bank illegally recovered vehicles, confused payment records, and improperly charged fees and interest. The CFPB said that Wells Fargo's irresponsible service will take place at least from 2011 to 2022. As far as housing mortgage loan is concerned, CFPB said that the bank improperly refused the customer's mortgage loan modification request within seven years, resulting in some customers losing their houses. In addition, the bank illegally charged more than 1 million times of the additional overdraft fees "based on the error automatic filter" to illegally freeze consumer accounts.

In 2016, CFPB Wells Fargo Bank was fined US $100 million for opening an account without the customer's permission. In 2018, it imposed a fine of $1 billion on Wells Fargo for other misconduct, but also provided the bank with a credit of $500 million for simultaneous settlement with monetary regulators.

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As a result, Wells Fargo Bank and regulators have identified a range of unacceptable practices. When necessary, we have been making systematic efforts to change and provide remedial measures for customers. This far-reaching agreement is an important milestone for us to change the operation mode of Wells Fargo Bank and truly solve these problems.