Business

Texas: AG Paxton Announces $575 Million Settlement with Wells Fargo for Violating Consumer Protection Laws

EAST TEXAS REVIEW — Attorney General Ken Paxton has announced that Wells Fargo Bank N.A. will pay $575 million to resolve claims that the bank violated consumer protection laws in Texas, 49 other states and the District of Columbia.

Published

7 years ago

January 1, 2019

Oakland Post

By East Texas Review

AUSTIN– Attorney General Ken Paxton has announced that Wells Fargo Bank N.A. will pay $575 million to resolve claims that the bank violated consumer protection laws in Texas, 49 other states and the District of Columbia through alleged unfair and deceptive trade practices. Texas’ share of the settlement is approximately $47 million. The agreement represents the most significant engagement involving a national bank by state attorneys general acting without a federal law enforcement partner.

Between 2009 and 2016, Wells Fargo opened as many as 3.5 million bank accounts, transferred funds, filed credit card applications and issued debit cards without customers’ knowledge or consent. The bank disclosed that it found 528,000 unauthorized enrollments of customers in its online bill payment service.

In addition, Wells Fargo improperly referred customers for enrollment in third-party renters and life insurance policies; charged auto loan customers for insurance they did not need; failed to ensure that customers received refunds of unearned premiums on certain optional auto finance products; and incorrectly charged customers for mortgage rate-lock extension fees.

The multistate coalition of state attorneys general accused Wells Fargo of imposing aggressive and unrealistic sales goals on bank employees. Workers who met the bank’s sales goals received bonuses, and those who did not risked losing their jobs.

“This settlement holds Wells Fargo accountable for its widespread victimization of its customers through unfair and deceptive trade practices,” Attorney General Paxton said. “My office will continue to do what’s necessary to protect consumers and the integrity of our banks and financial institutions.”

Wells Fargo established a consumer redress review program through which customers who have not been compensated through other remediation programs already in place can have their inquiry or complaint reviewed by a bank escalation team for possible relief. Wells Fargo will create and maintain a website for consumers to use to access the program and will provide periodic reports to the states about the program’s progress. More information on the redress review program, including Wells Fargo escalation phone numbers and the website address, will be available on or before February 26, 2019.

Wells Fargo also agreed to provide remediation of more than $385 million to approximately 850,000 auto finance customers improperly charged premiums, interest and fees for force-placed collateral protection insurance. The remediation will include payments to over 51,000 customers whose vehicles were repossessed. The bank will provide refunds totaling more than $37 million to certain auto finance customers who were deprived of proper refunds for unearned portions of optional Guaranteed Asset/Auto Protection (GAP) products sold as part of motor vehicle financing agreements. Wells Fargo will refund over $100 million to residential mortgage customers for improper rate lock extension fees.

Previously, Wells Fargo committed to providing restitution to consumers in excess of $600 million, and it will pay over $1 billion in civil penalties to the federal government. An order from the Federal Reserve requires the bank to strengthen its corporate governance and controls, and restricts Wells Fargo from exceeding its current total asset size.
View the multistate agreement with Wells Fargo here: https://bit.ly/2EOJtet

This article originally appeared in the East Texas Review.

Oakland Post

Posts by Oakland Post

Up Next

CEO Kobi Wu is changing the face of advertising with VisuWall

Don't Miss

MSNBC finishes first in primetime basic cable for first time ever

Oakland Post

2 Comments

Pingback: Texas: AG Paxton Announces $575 Million Settlement with Wells Fargo for Violating Consumer Protection Laws | BlackPressUSA – Consumer Memo

Activism

Oakland Post: Week of March 18 – 24, 2026

The printed Weekly Edition of the Oakland Post: Week of March 18 – 24, 2026

Published

6 days ago

March 22, 2026

Oakland Post

To enlarge your view of this issue, use the slider, magnifying glass icon or full page icon in the lower right corner of the browser window.

Oakland Post

Posts by Oakland Post

Advice

Financial Wellness and Mental Health: Managing Money Stress in College 

While everyone’s financial situation is unique, several common sources of stress have the potential to strain your financial health. These include financial and economic uncertainty, existing debts, unexpected expenses, and mental or physical health changes. Financial stress may differ from situation to situation, but understanding the factors contributing to yours may help you begin to craft a plan for your unique circumstances.

Published

2 weeks ago

March 17, 2026

Oakland Post

Sponsored by JPMorganChase

As a college student, managing financial responsibilities can be stressful.

If you’ve found yourself staying up late thinking about your finances or just feeling anxious overall about your financial future, you’re not alone. In one survey, 78% of college students who reported financial stress had negative impacts on their mental health, and 59% considered dropping out. While finances can impact overall stress, taking steps to manage your finances can support your mental, emotional and physical well-being.

When it comes to money, the sources of stress may look different for each student, but identifying the underlying causes and setting goals accordingly may help you feel more confident about your financial future.

Consider these strategies to help improve your financial wellness and reduce stress.

Understand what causes financial stress

2. Determine your financial priorities

Start by reflecting on your financial priorities. For students this often includes paying for school or paying off student loans, studying abroad, saving for spring break, building an emergency fund, paying down credit card debt or buying a car. Name the milestones that are most important to you, and plan accordingly.

3. Create a plan and stick to it

While setting actionable goals starts you on the journey to better financial health, it’s essential to craft a plan to follow through. Identifying and committing to a savings plan may give you a greater sense of control over your finances, which may help reduce your stress. Creating and sticking to a budget allows you to better track where your money is going so you may spend less and save more.

4. Pay down debt

Many students have some form of debt and want to make progress toward reducing their debt obligations. One option is the debt avalanche method, which focuses on paying off your debt with the highest interest rate first, then moving on to the debt with the next-highest interest rate. Another is the debt snowball method, which builds momentum by paying off your smallest debt balance, and then working your way up to the largest amounts.

5. Build your financial resilience

Some financial stress may be inevitable, but building financial resilience may allow you to overcome obstacles more easily. The more you learn about managing your money, for instance, the more prepared you’ll feel if the unexpected happens. Growing your emergency savings also may increase resilience since you’ll be more financially prepared to cover unexpected expenses or pay your living expenses.

6. Seek help and support

Many colleges have resources to help students experiencing financial stress, like financial literacy courses or funds that provide some assistance for students in need. Talk to your admissions counselor or advisor about your concerns, and they can direct you to sources of support. Your school’s counseling center can also be a great resource for mental health assistance if you’re struggling with financial stress.

The bottom line

Financial stress can affect college students’ health and wellbeing, but it doesn’t have to derail your dreams. Setting smart financial goals and developing simple plans to achieve them may help ease your stress. Revisit and adjust your plan as needed to ensure it continues to work for you, and seek additional support on campus as needed to help keep you on track.

 JPMorgan Chase Bank, N.A. Member FDIC