Wells Fargo & Co. will pay $575 million to settle state-level claims over sales practices, marking the latest cost in the fallout from a series…
Wells Fargo & Co. will pay $575 million to settle state-level claims over sales practices, marking the latest cost in the fallout from a series of scandals that erupted at the bank more than two years ago.
The settlement with 50 states and the District of Columbia announced Friday resolves state investigations into Wells Fargo’s practices from 2002 to 2017. The practices, which have previously been disclosed, include opening bogus accounts, charging improper mortgage rate-lock extension fees and forcing insurance policies on auto-lending customers.
Texas’ share of the settlement will be about $47 million, according to Attorney General Ken Paxton’s office. Of that, $42.6 million will go to the state’s Supreme Court Judicial Fund, which helps pay for court programs and operations.
The remaining $4.7 million will go to cover the state’s attorneys’ fees and investigative costs, according to the settlement agreement.
“This settlement holds Wells Fargo accountable for its widespread victimization of its customers through unfair and deceptive trade practices,” Paxton said in a statement.
