![]() The "spread" it charged was much higher than the rates it cited to customers, and Wells Fargo secretly pocketed tens of millions of dollars. The profit it earned was referred to internally as a "spread" or "sales margin." To make money, Wells Fargo would buy the currency for a cheap price from one party and sell the currency to the other party for a more expensive price. These services included converting foreign currency to U.S. Wells Fargo offered foreign exchange services to commercial customers, many of which were small and medium-sized businesses. How did Wells Fargo overcharge customers? Attorney Audrey Strauss said in a news release. “We all put trust in our banking institutions to deal with us honestly, fairly and transparently when we are their customers. For the better part of a decade, Wells Fargo abused this trust, using tricks, false information and other deceptive practices to fraudulently overcharge customers who used the Bank’s foreign exchange service,” U.S. Attorney’s Office for the Southern District of New York. Wells Fargo agreed to a $72.6 million settlement Monday for overcharging and misleading bank customers about foreign exchange fees from 2010 to 2017.Ībout half of the settlement ($35.3 million) will be paid directly to the 771 customers affected by the fraud, and approximately $37.3 million will be paid to the United States as civil penalties for violating financial regulations, according to the U.S. ![]()
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