Mar 30, 2017 10:39 AM EDT
US bank Wells Fargo has agreed to pay $110 million as settlement for the 11 class-action lawsuits brought by customers who had accounts opened without their permission. This comes after the company was fined $185 million in September 2016 for illegally opening around two million accounts.
When approved, the settlement will provide payouts to all Wells Fargo customers victimized by the bank's malpractices from 2009 until today. The payments are on top of the money received by the customers last year with the Los Angeles city attorney's office and federal regulators, according to the Los Angeles Times. America's biggest bank has already refunded 180,000 account holders, although it is not clear how many individual customers that represent.
Wells Fargo's new president and CEO Tim Sloan said the agreement is another step in the company's journey to make things right with customers and rebuild trust.
"We want to ensure that each customer impacted by our sales practices issue has every opportunity for remediation, and this agreement presents an additional option," he added in a statement reported by BBC. Meanwhile, last September's fine on Wells Fargo was imposed by the US Consumer Financial Protection Bureau after an investigation found its sales practices.
As per the investigation, Wells Fargo illegally signed up customers for deposit and credit card accounts to meet sales targets.
The customers did not want the sign-up nor know that they had. Wells Fargo also saw a slowdown in its customer business for the previous months due to the numerous scandals it has been involved with. Credit card applications were, reportedly, down 53 percent in February while customers opened 40 percent fewer checking accounts.
Regulators are going after the bank for its other bad practices. In a separate announcement on Tuesday, Wells Fargo said the Office of the Comptroller of the Currency downgraded its rating. The OCC explained that the downgrade was because of numerous regulatory actions that include settlement over the fake accounts scandal.
The class action lawsuit was filed last May 2015 by Shahriar Jabbari and Kaylee Heffelfinger alleging among others that Wells Fargo regularly opened unauthorized accounts. Wells Fargo, on the other hand, expects the settlement to resolve claims in other 11 pending class action lawsuits.
Retailers can manipulate consumer regret to beat competitors
The French luxury group gains full control of the 70-year-old Parisian fashion house Christian Dior in a mammoth deal worth around €12.1 billion.
UK luxury fashion retailer Burberry posts lackluster set of results for its second half following an impressive result in the third quarter, a retail analyst stated.
What seemed like a perfect hacking operation turned out to be a failure as Kaspersky has spotted a mistake on the part of the Lazarus hackers. It found a brief connection that came from North Korea - proving their identity and origin.
A lawsuit has been filed by a Democratic political consultant and Fox News contributor on Monday alleging, among others, that Roger Ailes denied her of a permanent hosting job after she turned down his sexual advances.
South African leader, Jacob Zuma, has sacked finance minister Pravin Gordhan in a move that drove the country's currency down five percent in value. The president calls for a midnight reshuffle in his Treasury members who he felt were disloyal to his political intentions.
The US president has long promoted a change on how foreign businesses should run their operations - and that is to revive American manufacturing. Uniqlo head showed he didn't like being given an ultimatum by Trump.
Cemex, one of the world's largest cement producers, has not participated in the first round of bids that is currently underway but said it is open to providing quotes to supply the raw materials for Trump's promised border wall.
Arket, which means 'sheet of paper' in Swedish, will cater to a modern-day market with products for men, women, children and the home.