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Consumer watchdog probing Wells Fargo's mishandling of accounts

Consumer watchdog probing Wells Fargo's mishandling of accounts
© Greg Nash

The Consumer Financial Protection Bureau (CFPB) is investigating Wells Fargo over its handling of consumer bank accounts, the company said.

The company disclosed in an SEC filing on Wednesday that the consumer watchdog is investigating its “past disclosures to customers regarding the minimum qualifying debit card usage required for customers to receive a waiver of monthly service fees on certain consumer deposit accounts.”

The watchdog is also looking into whether customers were “unduly harmed” by the company’s practices regarding freezing and closing consumer deposit accounts after it suspected of fraudulent activity. The company had previously disclosed that investigation, according to Reuters.

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The Hill has reached out to CFPB for comment.

Wells Fargo has been under continuous scrutiny since it was revealed in 2016 that the bank charged fees on millions of accounts that were opened without their consent or sold through misleading tactics.

In 2018, the bank paid $1 billion to settle charges that it charged foraged borrowers inappropriate fees and forced loan customers to purchase auto insurance that they did not need.

In its filing, the company said it estimates potential losses for litigation over the scandals was $2.6 billion as of March 31.