Wells Fargo operates under at least four major consent orders from federal regulators

Wells Fargo has agreed to multiple consent orders — formal agreements with banking regulators that require the bank to fix specific problems and submit to ongoing oversight. The exact number and scope of these orders has changed over time as the bank has settled violations and regulators have issued new ones. As of 2024, Wells Fargo is operating under consent orders from the Office of the Comptroller of the Currency (OCC), the Federal Reserve, the Consumer Financial Protection Bureau (CFPB), and the Securities and Exchange Commission (SEC).

A consent order is not a fine or a criminal charge. It is a binding agreement that says: the bank did something wrong, the bank admits it, and the bank promises to change its practices and prove it did so. Regulators monitor the bank's progress, and if the bank fails to comply, regulators can impose additional penalties or restrictions on the bank's operations.

Key Takeaways

  • Wells Fargo has been under consent orders from multiple federal regulators since 2016, when the fake accounts scandal became public.
  • Each consent order covers different violations — fake accounts, mortgage lending problems, auto lending problems, wealth management issues — and requires different fixes.
  • Consent orders do not directly affect your account, but they do require Wells Fargo to change how it operates and to compensate customers harmed by past misconduct.
  • The bank must report regularly to regulators on whether it is meeting the terms of each order, and regulators can extend or modify the orders if progress is slow.

The OCC consent order and what it covers

The Office of the Comptroller of the Currency (OCC) issued a consent order to Wells Fargo in 2016 following the discovery that the bank had opened millions of fake deposit and credit card accounts without customer permission. The order required Wells Fargo to overhaul its sales practices, strengthen its compliance and risk management, and pay restitution to harmed customers.

This order has been modified and extended multiple times. In 2020, the OCC expanded it to cover additional violations in mortgage lending and auto lending — practices like charging customers for add-on services they did not request and failing to disclose loan terms accurately. The order requires Wells Fargo to submit detailed plans for fixing these problems and to report quarterly on its progress.

The Federal Reserve consent order

The Federal Reserve issued its own consent order to Wells Fargo in 2018, focusing on the bank's governance, risk management, and internal controls. The Fed's order required Wells Fargo to strengthen its board of directors, improve how it identifies and manages risks, and ensure that executives are held accountable for misconduct.

The Federal Reserve order is broader than the OCC's in some ways because it covers the bank's overall management structure and culture, not just specific product lines. The Fed has extended this order multiple times and has stated it will remain in place until the bank demonstrates sustained compliance across all business lines.

The CFPB consent order

The Consumer Financial Protection Bureau (CFPB) issued a consent order to Wells Fargo in 2016 that required the bank to pay $3 billion in restitution to customers harmed by fake accounts, unauthorized credit card products, and improper auto loan practices. The order also required the bank to establish an independent monitor to oversee its compliance efforts.

The CFPB order is primarily focused on compensation and remediation rather than ongoing operational changes, though it does require Wells Fargo to maintain systems for identifying and compensating harmed customers. The bank has paid out billions in restitution under this order, though disputes continue over whether all harmed customers have been identified and compensated.

The SEC consent order

The Securities and Exchange Commission (SEC) issued a consent order to Wells Fargo in 2020 related to misconduct in the bank's wealth management division. The order found that Wells Fargo advisors had misled customers about investment products and had failed to disclose conflicts of interest. Wells Fargo agreed to pay $3 billion to settle the SEC's charges.

This order required Wells Fargo to improve how it trains and supervises investment advisors and to strengthen its disclosure practices. The SEC has oversight authority over this order and can require additional remediation if the bank fails to comply.

Why consent orders matter for customers

Consent orders do not directly change your account or your relationship with Wells Fargo. You will not receive a notice that the bank is under a consent order, and the order does not give you new rights that you did not already have.

However, consent orders do matter because they require the bank to change how it operates going forward and to compensate customers for past harm. If you were a victim of fake accounts, improper auto lending, mortgage problems, or wealth management misconduct, you may be may have access to to restitution under one of these orders. The orders also require Wells Fargo to implement new controls and oversight to prevent similar problems from happening again.

How to learn about you were harmed and may have access to to compensation

Wells Fargo has established settlement programs and restitution processes for customers harmed by the misconduct covered in these consent orders. The bank maintains a website and a claims process where you can report that you were affected and request compensation.

To find out whether you may be may have access to to restitution, you can contact Wells Fargo directly through its customer service line or visit its settlement information page. You can also file a complaint with the CFPB, which maintains records of the consent orders and can direct you to the appropriate settlement program. Keep records of any unauthorized accounts, fees, or charges you believe were related to Wells Fargo's misconduct, as you may need to provide documentation to support a restitution claim.

Frequently Asked Questions

Does being under a consent order mean Wells Fargo is going to fail or lose its banking license?

No. A consent order is a regulatory tool, not a sign that the bank is failing. It means regulators found specific problems and required the bank to fix them. Wells Fargo remains a fully licensed bank and continues to operate normally. However, regulators can impose additional penalties or restrictions if the bank fails to comply with the order.

Can I sue Wells Fargo separately if I was harmed by the misconduct covered in a consent order?

That depends on the specific misconduct and whether you have already received compensation through a settlement program. Some customers have filed class action lawsuits in addition to seeking restitution through the bank's settlement processes. You may want to consult an attorney to understand your options if you believe you were harmed.

How long will these consent orders stay in place?

There is no fixed end date. Regulators have stated they will keep the orders in place until Wells Fargo demonstrates sustained compliance over a period of time. The OCC and Federal Reserve have extended their orders multiple times, and it is likely they will remain in place for several more years.

What happens if Wells Fargo violates a consent order?

Regulators can impose additional penalties, including fines, restrictions on the bank's business activities, or requirements to hire additional compliance staff. Repeated violations could lead to more severe enforcement action, though regulators have not taken such steps to date.