Wells Fargo “predatory and unlawful practices” continues to haunt the bank. The scandal saw two CEOs leave the bank. Wells Fargo is still looking for a CEO.
According to a statement from the Navajo Nation, a Native American tribe, Wells Fargo & Co has agreed to pay $6.5 million in order to settle a lawsuit over its “predatory and unlawful practices”.
In 2017, the Navajo Nation had sued Wells Fargo in federal and tribal courts alleging that Wells Fargo had opened unauthorized accounts for vulnerable tribe members as part of the potentially millions of fake accounts opened by bank employees nationwide.
In a statement, Jonathan Nez, President of Navajo Nation stated, the settlement “puts other companies on notice that harmful business practices against the Navajo people will not be tolerated”.
Wells Fargo stated, the settlement demonstrates its “commitment to make things right regarding past sales practices issues.”
The development comes in the wake of a $575 million settlement Wells Fargo had reached in 2018 over claims that it opened fake customer accounts and improperly referred and charged customers for financial products.
The scandal saw two CEOS leave the bank.
Wells Fargo is still searching for a replacement for its former CEO Timothy Sloan, who abruptly stepped down in March 2019.