June 2, 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

Alpine Floor & Home: A Legacy of Quality Since 1968

June 2, 2025

June 2, 2025

Founded in 1968 with a single location, Alpine Floor & Home began as a humble family business with a clear...

Chin Chin to Close West Hollywood Location After 45 Years of Service

June 2, 2025

June 2, 2025

Iconic Sunset Plaza Restaurant Announces Final Day of Operations Chin Chin, the iconic Chinese eatery that has been a fixture...

LACMA’s $700M David Geffen Galleries to Open in 2026

June 2, 2025

June 2, 2025

New Structure Will Replace Original Midcentury Buildings Construction crews are entering the final stretch on the David Geffen Galleries, a...

Criterion Mobile Closet Arrives in L.A. for Two-Day Stop at Santa Monica’s Aero Theatre

June 2, 2025

June 2, 2025

More Than 1,000 Classic Titles June 6–7 During American Cinematheque’s Bleak Week  Following its successful appearances at SXSW and Vidiots...

Lane Closures Return to PCH in Malibu for Fire Recovery and Emergency Repairs

June 1, 2025

June 1, 2025

Traffic Will Be Impacted as Caltrans and the USACE Conduct Cleanup  The California Department of Transportation (Caltrans) has announced updated...

Update: Police Non-Emergency Line Temporarily Down Due to Service Outage in Culver City

June 1, 2025

June 1, 2025

Emergency 9-1-1 Services Remain Active; Alternate Numbers are Available  UPDATE – Monday, June 2 at 7:25 am The Culver City...

Culver City to Frame Iconic Tree with Landmark Sculpture by Charles Gaines

June 1, 2025

June 1, 2025

Acclaimed Conceptual Artist’s Public Artwork Enters Final Phase Culver City is moving forward with the final phase of an ambitious...

Defensible Space, Defined: How A Plus Tree Protects Communities from Wildfire

May 30, 2025

May 30, 2025

In the wildfire-prone landscapes of the Western United States, safeguarding homes and communities requires proactive measures. A Plus Tree, a...

WeHo Pride Weekend Begins and 2025 Icons Announced: Parades, Concerts, and Community Celebration Kicks Off

May 30, 2025

May 30, 2025

Three-Day LGBTQ+ Festival Features Performances by Lizzo, Maren Morris, and Kim Petras West Hollywood is preparing to kick off its...

Palisades Village to Reopen in 2026 with Revamped Retail, Dining, and Community Spaces

May 29, 2025

May 29, 2025

Elysewalker Set to Return With Park Reconstruction, Holiday Events, and Streetscape Upgrades Palisades Village, the open-air shopping and lifestyle destination...

Bel Air Seventh Grader Reaches Finals of Scripps National Spelling Bee

May 29, 2025

May 29, 2025

Oliver Halkett of Mirman School Competed on Thursday for a $50,000 prize Thirteen-year-old Oliver Halkett, a seventh grader from Mirman...

(Video) Signs That Your Aging Loved Ones Are in Need of Caregiving

May 29, 2025

May 29, 2025

To Find Out More, Go To Safelyhomeagain.com To Find Out More, Go To https://t.co/ZCPyKHj5aq pic.twitter.com/cDTEPjfA6s — Westside Today (@WestsideLAToday) May...

Two Men Charged in Culver City Kidnapping and Robbery After Victim Forced to Withdraw Cash

May 29, 2025

May 29, 2025

Suspects Allegedly Abducted Man at Gunpoint, Drove Him to Multiple Banks  Two men have been arrested and formally charged in...

Salt & Straw Unveils Summer Pie Series with Five Seasonal Ice Cream Flavors

May 29, 2025

May 29, 2025

Five New Flavors Inspired by Classic Summer Pies Will Be Introduced Salt & Straw is giving summer a scoopable twist...

(Video) Interviews with Rick Caruso and Elyse Walker, with a Dennis Quaid cameo

May 28, 2025

May 28, 2025

We spoke at the Press Conference to announce plans to reopen Palisades Village Shopping Mall. Actor Dennis Quaid arrives to...