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Wells Fargo to pay $575 million to settle US states claims

Wells Fargo & Co. (WFC) reached an agreement with the attorneys general from all 50 US states and the District of Columbia on issues related to its sales practices and mortgage interest rates. The agreement includes the payment of $575 million to resolve claims made by the state attorneys general on these issues.

Wells Fargo also agreed to create a website that contains details of the issues and the company’s remediation efforts along with contact information that customers can use in case of any queries. The company will maintain teams to respond to customers’ questions on these matters.

As of the end of the third quarter of 2018, Wells Fargo set aside $400 million of the settlement amount and expects to set aside $175 million in the fourth quarter of 2018. The company will also keep the states updated on the status of its remediation efforts.

Nothing’s looking ‘fine’ for Wells Fargo

In 2016, Wells Fargo agreed to pay $185 million to settle claims by the federal government related to the creation of fake accounts. The bank has faced fines over several issues which include opening accounts in the names of customers without permission and improper charges related to mortgage interest rates. As of 2:35 pm ET, the stock was up 1.8%.

 

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