Posted September 21, 2018 12:03:50A Michigan bank that was accused of paying $1,2 million in overdraft fees to customers was found liable Tuesday for $7.5 million in the scandal, the U.S. Attorney’s Office said.
The state’s attorney general’s office and a federal regulator announced the settlements on Wednesday, the state’s Department of Licensing and Regulation said in a news release.
The bank agreed to pay $1 million to settle a civil rights lawsuit brought by the Michigan Department of Labor and Industry, and the state will also pay a $4.5-million penalty to a bank customer, the release said.
The federal agency announced the settlement with Wells Fargo Bank.
The Michigan bank, Wells Fargo & Co., was charged with violating the Fair Credit Reporting Act and wire fraud laws for its role in overcharging customers by $7 million over a 10-year period, the news release said, adding that Wells Fargo did not cooperate with investigators or turn over the data to the agency.
The banks charges were the result of an investigation by the federal government, the bank said.
In June 2018, federal regulators launched an investigation into Wells Fargo and another Michigan bank over charges for overdraft and credit card transactions.
Federal authorities are looking into whether the bank had improperly facilitated overdraft transactions, whether customers had improper access to the bank’s electronic systems, and whether the banks violated the Fair Debt Collection Practices Act, according to the U,S.
The investigation began in October 2018, and Wells Fargo’s bank accounts were frozen until after the U of A student-led student government won a $100,000 settlement with the bank.