Wells Fargo Reaches $575 Million Agreement With State Attorneys
SAN FRANCISCO–(BUSINESS WIRE)–Wells Fargo & Co. (NYSE:WFC) today reached an agreement with all 50 state Attorneys General and the District of Columbia regarding previously disclosed retail sales practices, auto collateral protection insurance (“CPI”) and Guaranteed Asset/Auto Protection (“GAP”), and mortgage interest rate lock matters.
The company has been engaged with its federal regulators to address these issues and is remediating affected customers.
“This agreement underscores our serious commitment to making things right in regard to past issues as we work to build a better bank,” said Tim Sloan, Chief Executive Officer and President, Wells Fargo.
Under the terms of the agreement, Wells Fargo will:
Pay a total of $575 million to resolve civil claims that the state Attorneys General otherwise might bring arising out of or related to the covered conduct prior to the effective date of the agreement.
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.
Wells Fargo will also provide periodic reports to the states on the progress of its existing remediation efforts.
As of the end of third quarter 2018 the company had accrued $400 million of the settlement amount and expects to accrue the remaining $175 million in fourth quarter 2018.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with $1.9 trillion in assets. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, investment and mortgage products and services, as well as consumer and commercial finance, through 7,950 locations, 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 37 countries and territories to support customers who conduct business in the global economy. With approximately 262,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 26 on Fortune’s 2018 rankings of America’s largest corporations. News, insights and perspectives from Wells Fargo are also available at Wells Fargo Stories.
Cautionary Statement about Forward-Looking Statements
This news release contains forward-looking statements about our future financial performance and business. Because forward-looking statements are based on our current expectations and assumptions regarding the future, they are subject to inherent risks and uncertainties. Do not unduly rely on forward-looking statements as actual results could differ materially from expectations. Forward-looking statements speak only as of the date made, and we do not undertake to update them to reflect changes or events that occur after that date. For information about factors that could cause actual results to differ materially from our expectations, refer to our reports filed with the Securities and Exchange Commission, including the “Forward-Looking Statements” discussion in Wells Fargo’s most recent Quarterly Report on Form 10-Q as well as to Wells Fargo’s other reports filed with the Securities and Exchange Commission, including the discussion under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2017, available on its website at www.sec.gov.
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