Wells Fargo will be paying hundreds of millions of dollars as they settle lawsuits with all 50 states. This lawsuit came after it was found that Wells Fargo had been illegally opening bank accounts in their current customers names to reach goals. The total amount of money to be paid is 575-million dollars.
The half-a-billion dollar agreement was settled with each of the state’s Attorneys General. Wells Fargo has also been in talks with federal regulators to address these issues and fix any other customer accounts.
Time Sloan, the Chief Executive Officer and President of Wells Fargo said they take this lawsuit very seriously, and will do what they can to make the situation right again.
“This agreement underscores our serious commitment to making things right in regard to past issues as we work to build a better bank,” said Sloan.
Besides paying 575- million, there are a few other terms to the agreement to settle the law suit including:
- 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.
On top of those three demands, Wells Fargo says they will also be giving frequent reports to each state on the status of their “remediating efforts”. Wells Fargo does not have all the money for settlements right now. In a press release they say they have 400 million of the 575, but will acquire the needed the 175-million before the end of the year.
The scheme to open fake accounts was found out about two years ago. Since then Wells Fargo has had to pay more than 2-billion dollars in fines and fees.