CFPB Terminates 2022 Consent Order Against Wells Fargo

Core Points - Wells Fargo has terminated its 2022 consent order with the Consumer Financial Protection Bureau (CFPB), marking the seventh consent order closed by regulators since 2019 [1] - The 2022 consent order included a $3.7 billion fine and mandated the cessation of surprise overdraft fees when consumers had available funds at the time of transactions [2] - The termination of the consent order is seen as a significant milestone in Wells Fargo's efforts to transform its operating practices and address previously identified unacceptable practices [3] Summary by Sections Consent Order Details - The consent order from December 2022 involved allegations of illegal acts by Wells Fargo, including wrongful fees and unlawful overdraft charges [2] - The order required Wells Fargo to end surprise overdraft fees, which were charged despite consumers having available funds at the time of transactions [2] Company Statements - Wells Fargo's CEO, Charlie Scharf, emphasized the importance of the agreement in resolving ongoing issues and transforming the bank's operating practices [3] - Scharf noted that the bank is committed to investing in risk and control infrastructure following the termination of multiple consent orders [3][4] Historical Context - The termination of the 2022 consent order follows the closure of a previous consent order by the Office of the Comptroller of the Currency (OCC) regarding sales practices, indicating a shift in the bank's operational approach [4]