If you hold one of three types of accounts with Wells Fargo, you may be entitled to a payment as part of a $3.7 billion settlement the bank made after a consumer protection watchdog found that Wells Fargo had broken federal consumer protection laws and used "illegal" practices when managing bank accounts, home loans and more.
According to a Jan. 17, 2023 blog post from the Consumer Financial Protection Bureau, a settlement with Wells Fargo was reached after the bureau found that more than 16 million Wells Fargo accounts were subject to the bank's "illegal practices, including misapplied payments, wrongful foreclosures, and incorrect fees and interest charges."
The total settlement amount, the post states, is $3.7 billion -- including a $1.7 billion fine that specifically goes into a victims' relief fund.
One in three American households is a Wells Fargo customer and is affected by its business practices and "corporate culture," the CFPB says. More specifically, Wells Fargo customers who had either an auto loan, mortgage loan or bank account between 2011 and 2022 were affected and may be eligible for a payout.
Here's a breakdown of how the bureau says accounts were harmed, how much customers could see from the settlement and more.
According to the CFPB, customers that held one of the following accounts between 2011 and 2022 were harmed. Here's a breakdown of how the bureau says each account was impacted, and how.
Wells Fargo Auto Loan Customers
Wells Fargo Mortgage Loan Borrowers
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Wells Fargo Bank Account Holders
According to the CFPB, the "payment amount varies." Additionally, the settlement states that the bank is required to "have a plan for each of the violations in the order."
Those who had a vehicle repossessed could be reimbursed at least $4,000, the bureau says. The settlement also states that Wells Fargo is required to pay $77.2 million to approximately 3,200 customers who "had issues working with the company to modify their loan payments to avoid foreclosure."
According to a report from CNBC, damages for customers with Wells Fargo bank accounts average around $100 per claim, and mortgage holders who were unable to modify their mortgages to avoid foreclosure are seeing an average of $24,215 per claim.
The CFPB states Wells Fargo is required to notify those who are eligible to receive money, and that customers are not required to take any action in order to receive payment. The bureau also states that it will be "supervising" the bank's repayment to customers."
"If you believe you are eligible for a payment and have not received it yet, you should first contact Wells Fargo at 844-484-5089, Monday through Friday from 9:00 a.m. to 6:00 p.m. ET," the post states.
If calling Wells Fargo does not resolve the issue, customers can contact the bureau by submitting a complaint online.
Some customers have already received their payments, the CFPB says.
"We have already proactively communicated with most of the customers who may have been impacted by the matters covered in the settlement, and those efforts are ongoing," a Wells Fargo spokesperson told CNBC Make It.
