You may benefit from the latest Wells Fargo settlement. The bank will pay $575 million to settle a lawsuit with all 50 state attorneys general and the District of Columbia. The latest settlement deals with retail practices where employees  opened 3.5 million fake accounts and caused consumers to pay fees for services they never requested. The settlement also covers sales of sketchy auto collateral protection insurance (“CPI”), Guaranteed Asset/Auto Protection (“GAP”), and a mortgage interest rate lock.

Wells Fargo has been ordered to repay more $1.2 billion since 2015 because of practices that cheated consumers. The bank has worked to put that chapter of its history behind it and this settlement is the latest step.  

Tim Sloan, Chief Executive Officer and President of Wells Fargo, said, “This agreement underscores our serious commitment to making things right in regard to past issues as we work to build a better bank,” 

California will get more than a quarter of the settlement money because it’s the bank’s home state and most of its customer live there.

California Attorney General Javier Beccera called the bank’s behavior “disgraceful.” He said, “Wells Fargo customers entrusted their bank with their livelihood, their dreams, and their savings for the future. Instead of safeguarding its customers, Wells Fargo exploited them.”

In addition to the payout, Wells Fargo will:

Create and maintain a website that lays out the issues for consumers and explains how to receive restitution payments. 

Create a designated team to handle the complaints and help consumers get what they need. 

Since 2015 many consumers have gotten restitution through settlements Wells Fargo negotiated with the federal Consumer Financial Protection Bureau, the Comptroller of the Currency, and through class action lawsuits. 

The new settlement should help consumers who have not yet benefited from legal action. Wells Fargo set up a hotline that will operate 24/7:  1-877-924-8697.