Attorney General George Jepsen announced that Connecticut is receiving $5.2 million from a $575 million settlement between Wells Fargo Bank and the attorneys general of all 50 states and the District of Columbia.
The settlement resolves consumer protection charges brought by the states against the San Francisco-based Wells Fargo following revelations that it opened 3.5 million unauthorized consumer retail accounts and enrolled customers in online banking services without their consent.
Wells Fargo was also charged with improperly referring customers for enrollment in third-party renters and life insurance policies, inappropriately charging auto loan borrowers for force-placed and unnecessary collateral protection insurance, failing to ensure that customers received refunds of unearned premiums on certain optional auto finance products, and incorrectly charging home loan borrowers with mortgage rate lock extension fees.
“Wells Fargo engaged in conduct that violated the public’s trust and ran afoul of state laws,” said Jepsen, who served on the multistate investigation into Wells Fargo’s actions. “This settlement resolves Connecticut’s consumer protection claims against the bank and creates an important avenue for Connecticut consumers seeking redress for the bank’s improper conduct. I’m proud of the strong, bipartisan work of the states in this investigation that has helped bring this matter to a close.”
Jepsen said that Connecticut’s $5.2 million share will be deposited into the state’s general fund.