Top
image credit: Unsplash

Wells Fargo pays $37.3m to settle US foreign exchange lawsuit

September 29, 2021

Category:

Wells Fargo will pay a total of approximately $72.6 million, with around $35.3 million having been paid directly to the 771 customers collectively as restitution.

The $37.3 million is to be paid to the US as civil penalties under the Financial Institutions Reform Recovery and Enforcement Act (FIRREA) and as asset forfeiture.

According to the suit, Wells Fargo defrauded 771 of its business customers on foreign exchange transactions between 2010 and 2017.

The bank admitted that during this time many of its FX sales specialists applied larger sales margins or spreads than they represented they would.

When contacted by concerned customers about increased pricing, the specialists would then give false explanations.

Read More on FinTech Futures