June 23, 2025 The Best Source of News, Culture, Lifestyle for Culver City, Mar Vista, Del Rey, Palms and West Los Angeles

Wells Fargo to Pay $50 Million in Penalties to City of Los Angeles

Wells Fargo will pay $50 million in penalties to the city of Los Angeles and restitution to customers as part of a settlement resolving litigation alleging the company opened up bank accounts without customers’ permission, the City Attorney’s Office announced today.

The settlement with Wells Fargo is on top of at least $135 million in penalties that the bank has also agreed to pay to two federal agencies over similar allegations.

The settlement stems from a lawsuit City Attorney Mike Feuer filed against Wells Fargo last May after the Los Angeles Times reported on the alleged fake accounts that were created without customers’ knowledge and led to customers racking up bank fees.

The City Attorney’s Office also has required that Wells Fargo set up a system for customers to claim restitution, under the settlement. The $50 million civil penalties under the city settlement will go toward “future consumer protection,” according to Feuer’s office.

Feuer called the settlement “a major victory for consumers.”

“We’re holding Wells Fargo accountable and assuring the violations we’ve alleged never happen in the future,” he said. “This extraordinary resolution sends a strong message — to big banks and consumers alike — that we’ll be vigilant in protecting consumer rights.”

Wells Fargo said the agreements were made with its customers in mind and out of a desire to show accountability.

“Wells Fargo reached these agreements consistent with our commitment to customers and in the interest of putting this matter behind us,” the company said in a prepared statement. “Wells Fargo is committed to putting our customers’ interests first 100 percent of the time, and we regret and take responsibility for any instances where customers may have received a product that they did not request.

“Our entire culture is centered on doing what is right for our customers. However, at Wells Fargo, when we make mistakes, we are open about it, we take responsibility and we take action. Today’s agreements are consistent with these beliefs.”

The Consumer Financial Protection Bureau, one of the federal agencies that also reached a settlement with Wells Fargo, has alleged the bank opened hundreds of thousands of deposit and tens of thousands of credit card accounts without their customers’ knowledge or permission.

The fake accounts were set up by bank employees to achieve sales goals and reap financial incentive rewards, and the bank fired about 5,300 employees as the result of the allegations, according to the CFPB.

The CFPB’s settlement requires Wells Fargo to pay $100 million in penalties, while the other federal agency, the Office of the Comptroller of the Currency, has secured a settlement requiring the bank to pay $35 million in penalties.

Related Posts

Recent Homebuyer Down Payments Slip for First Time in Nearly Two Years

June 23, 2025

June 23, 2025

April’s Median Down Payment Fell as Buyers Lean Toward Lower-Cost Homes The median down payment made by U.S. homebuyers dropped...

Del Rey Affordable Housing Project to Rise on Former Charter School Site

June 23, 2025

June 23, 2025

Community Corp., Local Faith Group Team Up to Build 122 New Apartments Plans are moving forward for a new residential...

Paris Hilton Buys Mark Wahlberg’s Beverly Park Mansion for $63.1M

June 22, 2025

June 22, 2025

The Heiress and Media Mogul Joins a Star-Studded Neighborhood Paris Hilton and husband Carter Reum have purchased a high-profile estate...

A.O.C. Brentwood to Close After 16 Years on San Vicente Boulevard

June 22, 2025

June 22, 2025

Chef Goin and Styne Cite Unsustainably High Rent in Decision to Close  A.O.C. Brentwood, the acclaimed Westside outpost from James...

LA City Councilwomen Yaroslavsky and Jurado Call for Legal Action Against Federal Immigration Raids

June 21, 2025

June 21, 2025

City Motion Targets Alleged Unconstitutional Tactics, End Qualified Immunity for Fed Officers  City Councilmembers Katy Yaroslavsky and Ysabel Jurado introduced...

Weekend Lane Closures on PCH in Malibu Could Snarl Summer Beach Traffic

June 21, 2025

June 21, 2025

Army Corps Work Triggers Weekend Closure on Pacific Coast Highway Motorists traveling along Pacific Coast Highway this weekend should prepare...

All Aboard to LAX: Metro Opens Game-Changing Transit Hub Ahead of Global Events

June 20, 2025

June 20, 2025

 New LAX/Metro Transit Center Comes Closer to Connecting Metro Directly to LAX The Los Angeles County Metropolitan Transportation Authority (Metro)...

Princess Diana’s Largest Wardrobe Auction Set for Beverly Hills

June 20, 2025

June 20, 2025

Over 200 Royal Garments to Hit the Auction Block for Charity More than 200 garments and royal artifacts, including the...

Queer Beauty Through the Ages: Getty Hosts Lecture on Greek Art’s Influence on LGBTQ Aesthetics

June 20, 2025

June 20, 2025

Art Historian to Trace Homoerotic Imagery From Ancient Greece to Modern Queer Identity As part of its ongoing Pride Month...

Food Fight on the Venice Boardwalk: Chefs Stand Up for Immigrants with Food

June 20, 2025

June 20, 2025

Turk’s Pizza Party Rallies Top Local Eateries for an Immigrant Rights Fundraiser In a bold display of culinary activism, Turk’s...

Navy Vietnam Vet Finally Gets His UCLA Commencement Moment

June 20, 2025

June 20, 2025

John Fong, 80, Missed His Graduation in 1968 While in Vietnam  Nearly six decades after completing his studies, U.S. Navy...

Culver City Launches Solidarity Campaign Alongside Hate Crimes Report Presentation

June 20, 2025

June 20, 2025

Join City Leaders on June 24 for a Community Presentation on Rising Hate Incidents Local officials and residents are invited...

Films, Flair, and Panoramas: Free Cultural Events Light Up The Ebell This Week

June 20, 2025

June 20, 2025

The Ebell Theatre Hosts a Double Feature of Films, Plus a Coffee Talk A pair of free public events this...

Culver City Police Nab Two Suspects in Canterbury Drive Burglary Case

June 19, 2025

June 19, 2025

Community Tip and Set Investigation Lead to Arrest of Repeat Offenders Culver City police have arrested two suspects in connection...

9th Circuit Court Backs Trump in Battle Over California National Guard Control

June 19, 2025

June 19, 2025

Federal Judges Allow Trump to Retain Command of Troops in Los Angeles Federal judges on Thursday cleared the way for...