Advocates cheer accountability, call for more action to protect consumers
On the heels of an announcement by the Consumer Financial Protection Bureau (CFPB) that Wells Fargo is being fined $3.7 billion for harms to consumers caused by the banks illegal and deceptive practices, consumer advocates applauded the move and called for even more penalties for the banking giant.
Wells Fargo will pay $2 billion in refunds to consumers and an additional $1.7 billion fine after the CFPB found the bank's practices harmed 16 million consumers.
In response to the news, Revolving Door Project Executive Director Jeff Hauser said:
"By returning $2 billion to defrauded customers’ pockets, CFPB Director Rohit Chopra continues to be the model whom all other regulators should aspire to resemble."
Hauser added that while today's action against Wells Fargo is welcome news, other agencies need to step up and rein-in the bank.
“The problem is that the CFPB cannot, by itself, solve what’s wrong at Wells Fargo. Chopra is genuinely doing all that he can, but other agencies, which have the proper tools to restrict and restructure the business itself, need to step up and find some of his fearlessness.”
Accountable.US also had positive words for the enforcement action by CFPB.
"Once again, Wells Fargo messed around with consumers’ hard-earned money and found out that behavior will not stand from the CFPB," said Liz Zelnick, Director of the Economic Security and Corporate Power program at Accountable.US.
Zelnick noted that Wells Fargo has funded legal action against the CFPB in order to prevent just this sort of enforcement action.
“Wells Fargo has contributed to a long-running, organized effort by greedy industries and politicians in their pocket to defang, defund or do away with the CFPB because it works so well to protect consumers from schemes, scams and predatory behavior," Zelnick said.
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