Arizona gets third-biggest cut of $575M Wells Fargo settlement
Dec 28, 2018, 12:00 PM | Updated: 2:43 pm
(AP Photo/Matt Rourke)
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.