Wells Fargo to pay $3.7 bn to settle charges of consumer law violations

Consumer banking giant Wells Fargo agreed to pay $3.7 billion to settle a laundry list of charges that it harmed consumers by charging illegal fees and interest on auto loans and mortgages, as well as incorrectly applied overdraft fees against savings and checking accounts.

The Consumer Financial Protection Bureau on Tuesday ordered Wells to repay $2 billion to consumers and enacted a $1.7 billion penalty against the bank. It's the largest fine to date against any bank by the CFPB and the largest fine against Wells, which has spent years trying to rehabilitate itself after a series of scandals tied to its sales practices.

Regulators made it clear, however, that they believe Wells Fargo had not done enough to clean up its act.

Put simply: Wells Fargo is a corporate recidivist that puts one out of three Americans at risk for potential harm, said CFPB Director Rohit Chopra, in a call with reporters.

Chopra said this pattern of behavior made make it necessary for regulators to take ...