Wells Fargo would pay $2 billion as a refund to its customers and $1.7 billion as a fine to the CFPB|Ken Teegardin|CC BY 2.0

Wells Fargo will pay $3.7 billion to settle its federal charges that alleged the company imposed illegal charges on auto loans and mortgages and misapplied overdraft fees on their accounts, among other unlawful practices.

The banking giant would pay $2 billion as a refund to its customers. The remaining $1.7 billion would be paid as a fine to the Consumer Financial Protection Bureau (CFPB)—the bureau’s largest fine ever.

CFPB said more than 16 million consumers fell victim to the bank’s practices from 2011 to 2022. 

The $3.7 billion penalty is the largest settlement paid by Wells Fargo to date. The bank paid $3 billion to the Securities and Exchange Commission over criminal charges in 2020.