US: Wells Fargo to pay 3.7 billion to avoid prosecution

The American bank Wells Fargo has agreed to pay 3.7 billion dollars to drop the cases of the Financial Products Consumer Protection Bureau (CFPB), directed against it for irregularities in the management of loans.

A large sum for a process familiar to American law. The American bank Wells Fargo will pay 3.7 billion dollars (about 3.5 billion euros) to repay customers after lawsuits brought by the Financial Products Consumer Protection Bureau (CFPB) for irregularities in the management of bank loans.

A statement from the Financial Products Consumer Protection Bureau says the group illegally charged interest on auto loans and made mistakes in applying for home loans.

“Consumers have had their car and mortgage loan fees and interest charged illegally, their car wrongfully repossessed, and their car and mortgage loans abused by the bank. Wells Fargo has also charged consumers illegal overdraft fees and applied other improper fees to checking and savings accounts .

In detail, Wells Fargo will pay two billion dollars to customers who have suffered damage, along with a fine of one billion and seven hundred million euros. This final payment will be earmarked for a victim assistance fund established by the CFPB.

This type of financial agreement is not uncommon in the United States. To avoid losing colossal amounts of legal fees during trials that can drag on, the party who has to prove his innocence can make use of financial arrangements and pay a portion of that money in damages and interest to the victims.

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