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Wells Fargo Hammered By Feds For Auto Loan Insurance Scam

David Kiley

Wells Fargo continues to try and change its culture of defrauding customers to book fees. Wells Fargo was hit Friday with a $1 billion fine from the Consumer Financial Protection Bureau and the Office of The Comptroller of the Currency to punish the bank for disregarding its own advertising promise to lock in interest rates on mortgages, as well as coercing consumers to pay for insurance on top of their auto loans that they did not need. Wells Fargo has been caught over the last two years violating numerous regulations, including opening unauthorized accounts for customers as a means for the bank’s sales force to meet quotas and earn bonuses for new business.