The U.S. Consumer Protection Bureau on Tuesday imposed the largest civil penalty on Wells Fargo & Co in a $3.7 billion settlement over widespread mismanagement of auto loans, mortgages and bank accounts, Reuters reported.

The consumer watchdog ordered the bank to pay a $1.7 billion civil penalty and another $2 billion to fix more than 16 million customer accounts affected by the violations, the agency said in a statement.

The bank illegally charged fees and interest on auto and mortgage loans, illegally repossessed cars and imposed illegal overdraft fees, among other things, the CFPB said.

“Wells Fargo is a repeat corporation that puts a third of American households at risk. We are concerned that the bank’s product launches, growth initiatives and other efforts to increase profits have delayed needed reforms,” CFPB Director Rohit Chopra told reporters.

He added that regulators should consider imposing additional limits on the bank beyond the $1.95 trillion asset limit set by the U.S. Federal Reserve in 2018, which Federal Reserve Chairman Jerome Powell said would remain in place until the company’s problems will not be solved.

Wells Fargo said the settlement would resolve issues that had remained unresolved for several years and said in a statement that it had “accelerated adjustment and recovery” from 2020.

The Wells Fargo fine is the latest in a series of actions that underscore the CFPB’s more aggressive stance under President Joe Biden’s administration.

Fighting corporate recidivism has become a key priority for President Joe Biden, who entered the White House in early 2021.

Last year, the Justice Department introduced a number of policy changes aimed at more effectively deterring repeat offenders. (News.ro)

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