In wake of ‘fake account’ scandal, Wells Fargo must pay $575 million fine to all 50 states

Wells Fargo is paying for its misdeeds.

Wells Fargo is paying for its misdeeds.

On Dec. 28, the bank took steps to start making amends for its litany of scandals over the past two years. It will pay a total of $575 million in settlements to all state governments. Attorneys general from all 50 states and the District of Columbia brought civil charges against Wells Fargo for creating more than a million fake bank and credit card accounts, among other accusations.

“Only a combination of strong federal consumer laws and strong federal enforcers, buttressed by attorneys general enforcing strong state laws and private attorneys bringing actions on behalf of consumers, can hold powerful corporations accountable,” said U.S. PIRG Education Fund’s Senior Director of Consumer Programs Ed Mierzwinski.

Wells Fargo will also start addressing customer concerns and provide compensation for those affected. Over the last few years, U.S. PIRG Education Fund has called on the CFPB and the Department of Justice to hold Wells Fargo accountable for its financial misconduct.

Read more about the settlement here.

Photo Credit: Ildar Sagdejev via Wikimedia Commons, CC BY SA 4.0