Wells Fargo expanding settlement related to sales practices scandal
Lender adding $32 million US to the previous agreement for a total settlement of $142 million US
Wells Fargo & Co. said it would expand its class action settlement related to the lender's retail sales practices to include customer accounts as early as May 2002.
The lender said it would add $32 million US to the previous agreement for a total settlement of $142 million US.
"The expansion of this agreement is another important step to make things right for our customers," said Tim Sloan, Wells Fargo's chief executive officer.
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Wells Fargo has been working to win back customer confidence following a sales scandal at its retail banking business and has paid a $185 million US fine to the U.S. government.
The settlement, announced in September, hammered the bank's share price and led to the resignation of then-chief executive John Stumpf.
The San Francisco-based lender has since then launched internal probes, fired more than 5,000 employees, apologized to customers, changed compensation plans and scrapped sales targets to win back customer confidence.