Agreement covers retail sales practices, auto and mortgage issues for which the company already is remediating customers
SAN FRANCISCO--(BUSINESS WIRE)--Wells Fargo & Co. (NYSE:WFC) today reached an agreement with all 50
state Attorneys General and the District of Columbia regarding
previously disclosed retail sales practices, auto collateral protection
insurance (“CPI”) and Guaranteed Asset/Auto Protection (“GAP”), and
mortgage interest rate lock matters.
The company has been engaged with its federal regulators to address
these issues and is remediating affected customers.
“This agreement underscores our serious commitment to making things
right in regard to past issues as we work to build a better bank,” said
Tim Sloan, Chief Executive Officer and President, Wells Fargo.
Under the terms of the agreement, Wells Fargo will:
-
Pay a total of $575 million to resolve civil claims that the state
Attorneys General otherwise might bring arising out of or related to
the covered conduct prior to the effective date of the agreement.
-
Maintain designated teams to review and respond to customer inquiries
on the covered issues.
-
Create and maintain a website that describes the issues and Wells
Fargo’s existing remediation efforts, and identifies contact
information for consumers to utilize if they have any questions or
concerns about the covered issues.
Wells Fargo will also provide periodic reports to the states on the
progress of its existing remediation efforts.
As of the end of third quarter 2018 the company had accrued $400 million
of the settlement amount and expects to accrue the remaining $175
million in fourth quarter 2018.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified, community-based
financial services company with $1.9 trillion in assets. Wells Fargo’s
vision is to satisfy our customers’ financial needs and help them
succeed financially. Founded in 1852 and headquartered in San Francisco,
Wells Fargo provides banking, investment and mortgage products and
services, as well as consumer and commercial finance, through 7,950
locations, 13,000 ATMs, the internet (wellsfargo.com) and mobile
banking, and has offices in 37 countries and territories to support
customers who conduct business in the global economy. With approximately
262,000 team members, Wells Fargo serves one in three households in the
United States. Wells Fargo & Company was ranked No. 26 on Fortune’s 2018
rankings of America’s largest corporations. News, insights and
perspectives from Wells Fargo are also available at Wells Fargo Stories.
Cautionary Statement about Forward-Looking Statements
This news release contains forward-looking statements about our future
financial performance and business. Because forward-looking statements
are based on our current expectations and assumptions regarding the
future, they are subject to inherent risks and uncertainties. Do not
unduly rely on forward-looking statements as actual results could differ
materially from expectations. Forward-looking statements speak only as
of the date made, and we do not undertake to update them to reflect
changes or events that occur after that date. For information about
factors that could cause actual results to differ materially from our
expectations, refer to our reports filed with the Securities and
Exchange Commission, including the “Forward-Looking Statements”
discussion in Wells Fargo’s most recent Quarterly Report on Form 10-Q as
well as to Wells Fargo’s other reports filed with the Securities and
Exchange Commission, including the discussion under “Risk Factors” in
our Annual Report on Form 10-K for the year ended December 31, 2017,
available on its website at www.sec.gov.
