By Ovunc Kutlu
ISTANBUL (AA) - Wells Fargo was ordered to pay $3.7 billion amid its consumer malpractices, the US consumer protection watchdog announced Tuesday.
The American multinational financial services company will pay more than $2 billion in redress to consumers and a $1.7 billion civil penalty for legal violations, the Consumer Financial Protection Bureau (CFPB) said in a statement.
The San Francisco-based company's "illegal conduct led to billions of dollars in financial harm to its customers and, for thousands of customers, the loss of their vehicles and homes," it added.
The bank's illegal activities affected more than 16 million consumer accounts, according to the CFPB.
Some of the malpractice included consumers illegally assessed fees and interest charges on auto and mortgage loans, cars wrongly repossessed, payments to auto and mortgage loans misapplied by the bank, unlawfully surprise overdraft fees and other incorrect charges to checking and savings accounts that continued for several years.
"Wells Fargo’s rinse-repeat cycle of violating the law has harmed millions of American families," said CFPB Director Rohit Chopra. "The CFPB is ordering Wells Fargo to refund billions of dollars to consumers across the country."
The bank's stock was down to $41.30 at the opening bell on the New York Stock Exchange -- down 1.22% from the previous close of $41.81.