Source: The Ascent —
Many consumers have struggled to keep up with their auto and mortgage loan payments this year due to surging inflation. And many have depleted their savings balances due to the higher living costs they’ve been forced to grapple with over the past 12 months.
But one banking giant and lender may have made financial matters exponentially worse for consumers at a time when things were already tough. And now, it’s going to pay.
A massive fine
The Consumer Financial Protection Bureau (CFPB) has fined Wells Fargo to the tune of $3.7 billion for mismanaging consumer loans and engaging in illegal activities. Of that, $2 billion is earmarked for consumer compensation, while $1.7 billion represents a civil penalty.
So what exactly did Wells Fargo do wrong? For one thing, it illegally imposed fees and interest charges on auto loans and mortgages when it shouldn’t have. That’s a big oopsie.
