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Wells Fargo ordered to pay $185 million for fake accounts

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Staff Writer | September 8, 2016
Wells Fargo Bank
Banking   Wells Fargo must pay $100 million to the CFPB

Wells Fargo Bank has been ordered to pay $185 million in fines and penalties to settle "the widespread illegal practice of secretly opening unauthorized deposit and credit card accounts."

According to the Consumer Financial Protection Bureau (CFPB), thousands of Wells Fargo employees opened the accounts in secret so they would get bonuses for hitting their sales targets.

More than 2 million deposit and credit card accounts may have been created without customer authorization.

Wells Fargo must pay $100 million to the CFPB — the largest fine ever levied by the federal consumer watchdog. It also will pay $50 million to the City and County of Los Angeles, along with a $35 million penalty to the Office of the Comptroller of the Currency.

It also must pay full restitution to all victims of the scheme.

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