Iowa to receive more than $6 million in Wells Fargo settlement

Iowa to receive more than $6 million in Wells Fargo settlement

In May, Wells Fargo agreed to pay $480 million to settle a class-action securities fraud lawsuit brought by investors who alleged the bank made misstatements and omissions in its disclosures about sales practices.

A $2.8 million settlement with banking giant Wells Fargo was announced Friday by Kentucky Attorney General Andy Beshear.

Wells Fargo customers who feel they've not received adequate restitution can request a review from a bank escalation team.

Friday's settlement marks the most recent in a long list of penalties related to Wells Fargo's sales scandal, which initially related to the bank opening millions of accounts in customers' names without their permission.

The state of Utah will receive $10 million in the settlement, paid to the Utah Division of Consumer Protection, said Francine A. Giani, executive director of the Utah Department of Commerce.

Improperly charged premiums, interest, and fees for force-placed collateral protection insurance to more than two million auto financing customers, despite evidence that the customers' regular auto insurance policy was in effect, and despite numerous customer complaints about such unnecessary placements.

California, the bank's home state, will get more than a quarter of the settlement funds because of the number of Wells Fargo customers residing there.

"Wells Fargo hit a new low when it completely deceived its customers to turn a profit", Illinois Attorney General Lisa Madigan said in a statement. In addition, Wells Fargo improperly submitted more than 6,500 renters insurance and/or simplified term life insurance policy applications and payments from customer accounts without the customers' knowledge or consent.

Incorrectly charging customers for mortgage rate lock extension fees.

Wells Fargo will create and maintain a website for consumers to use to access the program and will provide periodic reports to Beshear's office about ongoing restitution efforts.

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