This is a never ending mess for Wells Fargo. If you haven’t been keeping track of everything they messed up, here’s a quick recap. Wells Fargo has paid out rebates to customers for opening fake accounts in their names, forced people to get car insurance they didn’t need and charged mortgage customers fees they didn’t deserve. Now they discovered they have been overcharging on foreign exchange fees.
Wells Fargo announced today they have set aside another $285 million to refund foreign-exchange and wealth-management clients, CNN reports. Wells Fargo said that a third-party investigation into its foreign-exchange business found the bank may be on the hook for $171 million to clients. That includes $31 million in refunds for instances where customers “received pricing inconsistent” with the bank’s commitments. The remainder of the foreign-exchange rebates cover a review of the rates Wells Fargo charged to clients over a seven-year period. The bank said those refunds are part of its “efforts to make things right and rebuild trust.”
$114 million in rebates will be paid out to wealth management business customers that were charged “incorrect fees” over the past seven years. These customers are valuable customers such as individuals with trust, estate and custodial accounts managed by Wells Fargo.