Wells Fargo slammed with $1 billion in fines for mortgage, auto loan abuses

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Wells Fargo
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Wells Fargo has been hit with $1 billion in fines due to a number of unsavory banking practices, like charging customers unfair mortgage fees and forcing them into auto insurance.

The penalty was announced Friday by the Consumer Financial Protection Bureau (CFPB), which said that Wells Fargo’s mortgage interest rate-lock extensions along with its mandatory insurance program were gross violations.

Wells Fargo hit with $1 billion fine for mortgage, auto loan abuses

In the consent order, which is posted online, Wells Fargo neither admitted or denied any of the agency’s findings. The bank also vowed to help repair the damage to consumers’ financial lives.

This is not the first time Wells Fargo has drawn scrutiny because of alleged abuses. In February, the bank was sanctioned for “persistent misconduct” toward consumers.

RELATED: 5 times Wells Fargo ripped people off in 2017

The controversies are enough to make one consider other alternatives to the big banks. Money expert Clark Howard advocates putting your money into credit unions and online banks, which offer better terms. Here are some to consider:

Banking alternatives for your money

Here are two banking alternatives that you should definitely take a look:

RELATED: Tired of being nickeled & dimed? Check out these online banks

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Craig Johnson is a conscious money-saver who still reads paperback books and listens to vinyl. He likes to write about how technology is making things easier and more affordable — but also sometimes more dangerous — for the modern consumer. You can reach Craig at [email protected]
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