The United States Consumer Financial Protection Bureau (CFPB) ordered Wells Fargo & Co. on Tuesday to pay $2 billion in redress to consumers and a $1.7 billion civil penalty for "widespread mismanagement" of loans, mortgages and accounts. The bank will also be required to stop charging surprise overdraft fees and ensure refunds for some auto loan borrowers.
The CFPB said the illegal activity affected over 16 million consumers, who "were illegally assessed fees and interest charges on auto and mortgage loans, had their cars wrongly repossessed and had payments to auto and mortgage loans misapplied by the bank."
Shares of Wells Fargo dropped 2.73% in premarket trade.
