Wells Fargo Reaches Settlement Over Car Repossessions
September 29 2016 - 3:30PM
Dow Jones News
Wells Fargo & Co. has reached a settlement with the Justice
Department and federal regulators over allegedly improper
repossessions of cars belonging to members of the U.S. military,
according to people familiar with the deal.
The settlement, for about $24 million, comes on the same day the
bank's CEO faced tough questions from a congressional committee
about its questionable sales practices in signing customers up for
bank accounts and credit cards they didn't want or know about.
The settlement is being struck with federal prosecutors and the
Office of the Comptroller of the Currency, a regulatory agency. The
OCC's share of the settlement is about $20 million and the Justice
Department's share of the settlement is about $4 million, according
to people familiar with the terms.
The settlement will resolve allegations from government
investigators that the bank violated the Servicemembers Civil
Relief Act, these people said.
Earlier this month, the bank reached a $185 million settlement
with a federal consumer protection watchdog, Los Angeles officials,
and the OCC after authorities found evidence of widespread abuse of
customers by bank employees secretly signing up customers for
unwanted accounts and often charging them fees on those
accounts.
Representatives for the bank couldn't immediately be reached for
comment.
The new settlement was first reported by Bloomberg.
Write to Devlin Barrett at devlin.barrett@wsj.com and Emily
Glazer at emily.glazer@wsj.com
(END) Dow Jones Newswires
September 29, 2016 15:15 ET (19:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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