Wells Fargo reaches $37.3 mln settlement of US claims it overcharged clients
NEW YORK, Sept 27 (Reuters) – Wells Fargo & Co on Monday reached a $37.3 million settlement to resolve U.S. authorities accusations that it fraudulently overcharged tons of of economic prospects who used its international trade companies.
The settlement filed with the U.S. District Courtroom in Manhattan requires a choose’s approval, and resolves civil fraud costs in opposition to the fourth-largest U.S. financial institution.
Wells Fargo didn’t instantly reply to requests for remark. In afternoon buying and selling, the financial institution’s shares had been down 2.1% at $46.91.
The San Francisco-based financial institution has been dogged for the final 5 years by a collection of scandals over its therapy of shoppers, and has been subjected since 2018 to a federal cap on asset development till it improves its operations and oversight.
Based on courtroom papers, Wells Fargo defrauded 771 prospects between 2010 and 2017 by systematically charging increased spreads or gross sales margins on international trade transactions than it promised, and offering monetary incentives to salespeople for the overcharges.
Reporting by Jonathan Stempel in New York; Enhancing by Mark Porter
