Going into 2023, California credit unions should be aware of certain guaranteed asset protection (GAP) product violations and other abuses that were noted in the Consumer Financial Protection Bureau’s (CFPB) consent order issued to Wells Fargo Bank in December that alleges improper practices.
The CFPB’s order states Wells Fargo must pay more than $3.7 billion because it violated an assortment of federal consumer protection regulations, including $2 billion in redress to more than 16 million consumers and a $1.7 billion civil penalty for legal violations.
While the California and Nevada Credit Union Leagues have continued to call on the CFPB to consider how credit unions set themselves apart from other financial service providers (especially those with a history of bad behavior) and tailor its rulemakings appropriately, credit unions should still take note of key findings within the CFPB’s latest consent order.
The bureau’s enforcement action outlines Wells Fargo’s repeated violations over a period of several years and across many of the bank’s largest product lines, including:
Click here to read the CFPB’s actual consent order.
For background and context, read League Summarizes Steps Required for GAP Waiver Purchases in CA.