Governor Andrew M. Cuomo today announced that Wells Fargo Bank will pay a $2 million penalty and provide approximately $2 million in direct consumer restitution payments for violations uncovered by a Department of Financial Services examination of the Bank's former affiliate. Among other issues, the Department's examination found that the Wells Fargo affiliate secured loans made through its Nowline Visa Platinum Credit Card Account product with an interest in the borrower's home -- which is not permissible under New York law.
"New Yorkers deserve to trust who they do business with -- and because of this aggressive investigation, individuals and families across the state will be justly compensated," Governor Cuomo said. "My administration is committed to ensuring that banks and credit card institutions are treating consumers honestly and fairly, and we will continue to do just that."
Benjamin M. Lawsky, Superintendent of Financial Services, said, "Our investigation uncovered that this Wells Fargo affiliate put borrowers' homes on the line for routine credit card purchases -- creating substantial and undue risks for consumers. This agreement will provide direct relief to New York consumers."