Indiana Part of Massive Wells Fargo Settlement

Posted: Updated:
Indiana Attorney General Curtis Hill Indiana Attorney General Curtis Hill
WASHINGTON, D.C. -

The Indiana Attorney General's office has announced a $575 million settlement with California-based Wells Fargo & Co. (NYSE: WFC) over claims the bank violated state consumer protection laws. As part of the settlement, which involves all 50 states and the District of Columbia, Indiana will receive $5.2 million.

Curtis Hill's office calls the settlement the "most significant engagement involving a national bank by state attorneys general acting without a federal law enforcement partner." The settlement resolves claims that Wells Fargo: 

  • Opened millions of unauthorized accounts and enrolled customers into online banking services without their knowledge or consent
  • Improperly referred customers for enrollment in third-party renters and life insurance policies
  • Improperly charged auto loan customers for force-placed and unnecessary collateral protection insurance
  • Failed to ensure that customers received refunds of unearned premiums on certain optional auto finance products
  • Incorrectly charged customers for mortgage rate lock extension fees.

"Such grossly unfair and deceptive trade practices as those demonstrated by Wells Fargo must never be allowed to stand," Hill said in a news release. "We must continue working tirelessly to hold companies accountable for engaging in blatant misconduct that harms consumers."

Per the terms of the settlement, Wells Fargo has agreed to create a consumer redress review program which will allow consumers who have not been made whole through other existing restitution programs to seek review of their complaint by a bank escalation team. The program will be implemented within 60 days.

Hill's office says Wells Fargo has already committed to or provided more than $600 million in restitution to consumers through its agreements with the federal Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau. The bank will also pay more than $1 billion in civil penalties to the federal government.

You can learn more about the claims against Wells Fargo by clicking here.

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