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Report: CFPB’s Wells Fargo fine was just 1 percent of potential penalty

Joe Mont | September 20, 2017

Among the ammunition fired at the Consumer Financial Protection Bureau by Republican critics is that it was slow to discover and act upon the discovery of illegal account openings at Wells Fargo.

Now there is a new bombshell: Congressional accusations that the Bureau assessed, literally, a penny on the dollar for what it could have fined the baking giant.

In September 2016, the CFPB fined Wells Fargo Bank, a subsidiary of Wells Fargo & Company, $100 million for what it called “the widespread illegal practice of secretly opening unauthorized deposit and credit card accounts.” The infractions date back to 2011. Spurred by sales targets and compensation incentives, employees boosted sales figures by covertly opening accounts and funding them by transferring funds from consumers’ authorized accounts without their knowledge or consent, often racking up fees or other charges... To get the full story, subscribe now.