Arizona gets third-biggest cut of $575M Wells Fargo settlement

PHOENIX – Arizona is getting one of the largest slices of Wells Fargo’s $575 million settlement over consumer law violations, it was announced Friday.

The attorneys general in all 50 states and the District of Columbia sued the banking giant for a variety of alleged misconduct, including the creation of millions of unauthorized accounts without customers’ knowledge.

Arizona’s share of $37.1 million was the third-highest payout of the settlement, behind only California’s $148.7 million and Texas’ $47.4 million.

“Arizonans suffered the second highest number of Wells Fargo sales practice violations in the country,” Attorney General Mark Brnovich said in a press release.

“Wells Fargo’s egregious behavior towards Arizona consumers was particularly offensive.”

More than $35 million of Arizona’s cut will go into state accounts established to strengthen consumer protection efforts, with $2 million going to cover attorneys’ fees and investigation costs.

According to the press release, Wells Fargo’s infractions included:

• Opening millions of unauthorized accounts and enrolling customers into online banking services without their knowledge or consent.
• Improperly referring customers for enrollment in third-party renters and life insurance policies.
• Improperly charging auto loan customers for force-placed and unnecessary collateral protection insurance.
• Failing to ensure that customers received refunds of unearned premiums on certain optional auto finance products.
• Incorrectly charging customers for mortgage rate lock extension fees.

The settlement also requires the bank to create a redress program for consumers not covered by a previously announced restitution program.

Wells Fargo CEO and President Tim Sloan told the Associated Press that his company is making a “serious commitment to making things right in regard to past issues.”

The Associated Press contributed to this report. 

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