Attorney General Jim Hood issued the following statement.
Attorney General Jim Hood announced that Mississippi will receive more than $2.5 million of a $575 million multistate settlement reached with Wells Fargo to resolve claims that the bank violated state consumer protection laws by (1) opening millions of unauthorized accounts and enrolling customers into online banking services without their knowledge or consent, (2) improperly referring customers for enrollment in third-party renters and life insurance policies, (3) improperly charging auto loan customers for force-placed and unnecessary collateral protection insurance, (4) failing to ensure that customers received refunds of unearned premiums on certain optional auto finance products, and (5) incorrectly charging customers for mortgage rate lock extension fees.
The total settlement amount for Mississippi is $2,538,491.41. Through this settlement with 50 states and the District of Columbia, Wells Fargo will also create a consumer redress review program through which consumers who have not been made whole through other restitution programs already in place can seek review of their inquiry or complaint by a bank escalation team for possible relief. More information on the program, including a website and contact information, will be available on or before February 26, 2019, at which time General Hood will provide the public with that information.
Wells Fargo has identified more than 3.5 million accounts where customer accounts were opened, funds were transferred, credit card applications were filed, and debit cards were issued without the customers’ knowledge or consent. The bank has also identified 528,000 online bill pay enrollments nationwide that may have resulted from improper sales practices at the bank. In addition, Wells Fargo improperly submitted more than 6,500 renters insurance and/or simplified term life insurance policy applications and payments from customer accounts without the customers’ knowledge or consent.
The states alleged that Wells Fargo imposed aggressive and unrealistic sales goals on bank employees and implemented an incentive compensation program where employees could qualify for credit by selling certain products to customers. The states further alleged that the bank's sales goals and the incentive compensation program created an impetus for employees to engage in improper sales practices in order to satisfy such sales goals and earn financial rewards. Those sales goals became increasingly harder to achieve over time, the states alleged, and employees who failed to meet them faced potential termination and career-hindering criticism from their supervisors.
The states also alleged that Wells Fargo improperly charged premiums, interest, and fees for force-placed collateral protection insurance to more than two million auto financing customers, despite evidence that the customers’ regular auto insurance policy was in effect, and despite numerous customer complaints about such unnecessary placements. Wells Fargo has agreed to provide remediation of more than $385 million to approximately 850,000 auto finance customers. The remediation will include payments to over 51,000 customers whose cars were repossessed.
Additionally, the states alleged that Wells Fargo failed to ensure that customers received proper refunds of unearned portions of optional Guaranteed Asset/Auto Protection (GAP) products sold as part of motor vehicle financing agreements. As a result, the bank has agreed to provide refunds totaling more than $37 million to certain auto finance customers.
Finally, the states alleged that Wells Fargo improperly charged residential mortgage loan consumers for rate lock extension fees even when the delay was caused by Wells Fargo, a practice contrary to the bank’s policy. Wells Fargo has identified and contacted affected consumers and has refunded or agreed to refund over $100 million of such fees.
“Mississippians should not have to worry about whether their bank will take advantage of them when making big life purchases, such as buying a car or a home, or saving for retirement,” General Hood said. “We are glad Wells Fargo is paying back what they knowingly and wrongly took from their customers, and this should be a warning to other big banks doing business in our state. We protect Mississippians’ rights to financial well-being—not corporate interests.”
Wells Fargo has previously entered consent orders with federal authorities—including the Office of the Comptroller of the Currency (OCC) and the Consumer Financial Protection Bureau (CFPB)—related to its alleged conduct. Wells Fargo has committed to or already provided restitution to consumers in excess of $600 million through its agreements with the OCC and CFPB as well as through settlement of a related consumer class-action lawsuit and will pay over $1 billion in civil penalties to the federal government. Additionally, under an order from the Federal Reserve, the bank is required to strengthen its corporate governance and controls, and is currently restricted from exceeding its total asset size.
As part of its settlement with the states, Wells Fargo has agreed to implement within 60 days a program through which consumers who believe they were affected by the bank's conduct, but fell outside the prior restitution programs, can contact Wells Fargo to be reviewed for potential redress. Wells Fargo will create and maintain a website for consumers to use to access the program and will provide periodic reports to the states about ongoing restitution efforts.
The settlement agreement can be found here. Consumers who have questions about the redress program are encouraged to contact either Wells Fargo directly or the Mississippi Attorney General’s Consumer Protection Division at 1-800-281-4418 or 601-359-4230.
31 comments:
An alternative headline:
Mississippi to receive $2.5 million from $575 million settlement with WF
Another win for Jim!
What an amazing leader he is!
Where will we spend it all????
50th Again ?
If you were to open an account in someone else's name and they did not authorize it you would get jail time. Stealing customer money is what WF did. If they will open accounts in your name to create additional fees what else will this company do to separate you from your money.
Can't believe all the suckers who still use this company for their banking.
The administration will create a watchdog group to keep an eye on Wells Fargo's criminal enterprise. This group will be staffed with the administrations finest relatives and donors.
The new organization will run out of the 2.5 million in short order. However the program will be deemed so successful that the program will go on for eternity at tax payer expense.
The Govana and the MDA will take credit for the 8 jobs created by this new program.
The citizens of the state will sleep well at night with the belief that the government takes corporate fraud seriously.
Richie Schwartz could have done better than that.
I have it from a great source that the money will be used to fix Jackson's potholes. (Is it April 1 yet?)
We were WFB customers since 1979. They started pulling this crap on us, and bye, bye, WFB. We closed our personal and business accounts, paid off a mortgage, closed a safe deposit box, and never looked back.
They still don't get it.
Another win for Jim??
No, he wasn't in on this one at the beginning and couldn't get his boys on the gravy train - so he was able to claim less than 1/2 of 1% of "their" settlement.
But, never miss the opportunity for a headline, no matter how little it matters - especially during an election year.
Will be so glad when he's out of office.....what a do-nothing opportunist. Lynn Fitch is no different. They couldn't make it outside Missippi'.
WFB = Too big to fail = greasing politician's palms.
If individuals pulled this crap they would be in prison. WFB bought their way out of this mess.
And Wells Fargo will be getting a chunk of that back with the State's upcoming bond deal.
Regarding the WF Settlement, here are some of Settlement numbers:
States receiving silicate or less than MS:
AR 1.29 mil
LA 1.9 mil
VT 1.98 mil
SD 1.82 mil
RI 1.21 mil
OK 2.6 mil
NH 1.16 mil
ND 1.21 mil
MT 2.77 mil
ME 1.13 mil
KS 2.3 mil
HI 1.4 mil
DE 2.0 mil
DC 1.11 mil
KY 3.67 mil
OH 2.9 mil
TN 4.98 mil
AL 7.9 mil
States with largest settlement payouts:
AZ 37 mil
CA 148 mil
CO 21 mil
FL 28 mil
GA 16 mil
NC 15 mil
NJ 16 mil
NV 13 mil
NY 11 mil
PA 16 mil
TX 47 mil
VA 11 mil
WA 16 mil
IL 10 mil
More Hood puffery.
I guess most of the commenters here think that a republican attorney would have been able to get Mississippi the same amount as what much larger states with more Wells Fargo branches will get. Anyone care to elaborate on their reasoning?
An alternate headline:
Mississippi Trump-Tates complain about free money from scummy bank that barely operates in their state because they think Hillary should be in jail.
He got what was owed based on the business WF did in this manner.
Just last week I got a letter from Regions advising that they had failed to use the agreed upon interest rate on a vehicle loan that I've paid four years on. Letter went on to say they had charged me too much and would refund it to the principle owed. I grew up thinking banking institutions were as infallible as preachers.
If the shoe had somehow been on the other foot (mine) I would have suffered some sort of penalty charge.
How nice of the State of MS to get this money back for its Wells Fargo customers who were wronged.
6:18 - evidently Regions can read the news. WF settlement; Trustmark federal lawsuit. Regions isn't being "nice" here, they are trying to cover their six before they get drawn into court.
Reply to 4:44. My thinking has nothing to do with a different AG getting better results on this one thing. My thinking was that ANY AG should be embarrassed to brag on this result. Rather it should be considered as routine staff work. It's like sending out a press release to brag that your team kicked an extra point.
To the 5:50 alternative headline poster.
I really do think she should be in jail. She sold Putin our uranium reserve without permission and the buyer donated to the Clinton Foundation which by the way has not given any money to charities.
Considering WF has about 4 branches in MS getting 2.5 million is about $10,000 per actual MS customer.
If General Hood could do that for all MS say with the opioid debacle then MS could pay its share of the national debt.
People who see this as anything but a positive are 1) hate filled jealous Tate hole suckers and/or 2) sausage finger Luscious Lucien ball rubbers
7:28, your math is about as interesting, accurate, and relevant as your attempt to use language to describe your obvious democratic politics.
How you can calculate the number of customers,a bank has by its branches is an interesting concept, but if your alogirithims have any validity you should at least start with the correct number of branches. Your statement is not even close, but understanding it is coming from Hood's campaign offices, why should we expect anything accurate or truthful?
Four branches, $10k per customer - you believe banks operate with 60 customers per branch? Next time you want to try to find some crass full way to throw your openness name around, at least use some reasonable, worthwhile arguement.
(BTW, WF has 13 branches in MS, according to a simple Google search - although that is still not relevant. Looking forward to reading Hood'as next press release proclaiming the bust of a fireworks retailers selling Chinese products at a roadside stand.)
Attn 7:28 How much did we the citizens of Mississippi pay in expenses (I am sure there were numerous New York, Chicago, Los Angeles or other meccas for spending), time for onboard attorneys, expenses for Mississippi funded outside "expert" attorneys etc.?
four branches, but numerous consumer loans.
to 9:32am...........anyone as brillant as you ought to be able to figure out the "expenses" in this matter. after all you are a citizen of the third world nation of the republic{an} of mississippi and we all know just how smart you are.
12/28@1:49, is that Mark Baker trying to discredit Lynn Fitch? We already know Baker doesn't like Jim Hood and that Lynn Fitch is challenging Baker as AG replacement for Hood. With Baker as AG, big businesses like Wells Fargo don't need to worry about AG lawsuits for defrauding Mississippi consumers. BTW, this is not Lynn Fitch.
Stick with the credit unions. Been with one all my life. I'm 76 now. Keesler Credit Union just open a branch on Old Fannin Rd. & Hwy 25. My dad was with Keesler CU all his life too. He's now in the big bank in the sky. RIP Dad.
Jackson needs to hire Jim to sue someone for them to raise infrastructure money.
So, how many Mississippians do you yahoos think were damaged by Wells Fargo?
Could the pay out possibly be related at all to the damages suffered?
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