www.marylandattorneygeneral.gov
Attorney General Frosh Announces $575 Million Settlement with
Wells Fargo
Agreement Resolves State Consumer Protection Claims for Alleged Unfair and
Deceptive Trade Practices for 50 States and the District of Columbia
BALTIMORE, MD (December 28, 2018) – Maryland Attorney General Brian E. Frosh today
announced a multistate settlement with Wells Fargo Bank N.A. (Wells Fargo) resolving claims
that the bank violated state consumer protection laws by:
1) Opening millions of unauthorized accounts and enrolling customers into online banking
services without their knowledge or consent;
2) Improperly referring customers for enrollment in third-party renters and life insurance
policies;
3) Improperly charging auto loan customers for force-placed and unnecessary collateral
protection insurance;
4) Failing to ensure that customers received refunds of unearned premiums on certain
optional auto finance products; and
5) Incorrectly charging customers for mortgage rate lock extension fees.
“Wells Fargo cheated its customers. It mislead them. It created phony accounts. It charged illegal
fees,” said Attorney General Frosh. “Wells Fargo’s outrageous conduct requires punishment, and
today we hold them accountable.”
Under today’s settlement with all 50 states and the District of Columbia, Wells Fargo will create
a consumer redress review program for consumers who believe they were affected by the bank’s
conduct, but have not been made whole through the bank’s other restitution obligations. Under
the program, which will be implemented within 60 days of the settlement, consumers can contact
Wells Fargo to be reviewed for possible relief. Wells Fargo will create and maintain a website
for consumers to access the program, and will provide periodic reports to the states about
ongoing restitution efforts.
The states alleged that Wells Fargo imposed aggressive and unrealistic sales goals on bank
employees and implemented an incentive compensation program encouraging employees to sell
certain products to customers. The states further alleged that the bank’s sales goals and the
incentive compensation program created an impetus for employees to engage in improper sales
practices in order to satisfy such sales goals and earn financial rewards. More than 3.5 million
customer accounts were opened, had funds transferred, credit card applications filed, or debit
cards issued without the customers’ knowledge or consent. The improper sales practices also