Wells Fargo agrees to $575M payout for improper sales practices

Wells Fargo & Co. (NYSE: WFC) agreed Friday to pay out $575 million to customers affected by its improper sales practices.

Those improper practices affected retail sales, auto collateral protection insurance (CPI), Guaranteed Asset/Auto Protection (GAP) and mortgage interest-rate lock matters, Wells Fargo says. The San Francisco-based bank reached the agreement with all 50 state attorneys general and the District of Columbia.

“This agreement underscores our serious commitment to making things right in regard to past issues as we work to build a better bank,” Tim Sloan, president and chief executive, says in a statement.

Wells Fargo says it has already accrued $400 million of the settlement and will have accrued the rest as of the end of the year.

As part of the agreement, Wells Fargo also agreed to: employ teams to review and respond to customer inquiries; create a website with more details on the remediation efforts; and give progress reports on those efforts.

The settlement…

Read the full story from the Washington Business Journal.

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