Wells Fargo Customers May Receive Settlement Money Following Massive Scheme

Wells Fargo customers in Bucks County may receive settlement funds after a 50-state agreement related to a fake account scandal.

The agreement between Wells Fargo and the 50 state attorneys general will have the mega bank pay $575 million to resolve claims that state consumer protection laws were violated.

Pennsylvania Attorney General Josh Shapiro's office announced on Friday that Wells Fargo will send $16.5 million to the Pennsylvania Treasury.

"The company will be forced to pay a sum of money to consumers who were harmed – though that amount is confidential under the terms of settlement," the press release from the attorney general's office said.

Wells Fargo fraudulently opened millions of unauthorized accounts and enrolled customers with online banking services, referred customers for enrollment in third-party renters and life insurance policies, charged more than 850,000 auto finance customers for unnecessary and duplicative insurance policies, did not ensure customers received unearned premiums on certain optional auto finance products, and incorrectly charged customers for mortgage rate lock extension fees.

"This bank opened millions of accounts for customers who didn't know about them, charged auto finance customers for insurance policies they didn't want or need, and charged mortgage customers over $100 million in unwarranted fees. With this settlement, we are holding Wells Fargo accountable and changing corporate conduct to protect consumers," Shapiro said.

Millions of unauthorized accounts were fraudulently opened by bank employees, including those in Bucks County, due to "aggressive and unrealistic sales goals" put forth by Wells Fargo management. Higher account openings and enrollments created incentive compensation for employees to "engage in improper sales practices." Those who did not meet the high sales goals faced the threat of losing their jobs or criticism from supervisors, authorities said.

In the wake of the scandal, Wells Fargo fired 5,300 employees who took part in illegal activity and recently got rid of three dozen district managers related to the fraud, the Wall Street Journal reported.

None of the local employees who partook in the scheme were criminally charged in connection with the massive fraud scheme.

The California-based bank, which operates eight locations in the Levittown area, launched a massive marketing campaign following the scandal to work to repair its reputation.

U.S. Senator Elizabeth Warren, who represents Massachusetts, has called out the bank on Capitol Hill since the scandal broke. She chided Wells Fargo for firing lower level management while senior leadership who supported the practices that led to employees breaking the law received bonuses.

The states' settlement forces the bank to implement a program within the next two months that will allow consumers to be informed of the restitution efforts. Additional information on the program will be available by the end of February.

Wells Fargo has already paid $1.2 billion in civil penalties to the federal government and to Los Angeles city and county.