Wells Fargo fined for creating fake accounts, other illegal practices

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SAN FRANCISCO - JANUARY 20:  Pedestrians walk by  a Wells Fargo Bank branch office January 20, 2010 in San Francisco, California. Wells Fargo beat analyst expectations by posting a fourth quarter earnings of $2.82 billion or 8 cents a share compared to a loss of $2.73 billion or 84 cents a share one year ago.  (Photo by Justin Sullivan/Getty Images)

Pedestrians walk by a Wells Fargo Bank branch office on Jan. 20, 2010, in San Francisco, California. Photo by Justin Sullivan/Getty Images

The Consumer Financial Protection Bureau fined Wells Fargo $100 million for illegal banking practices on Thursday.

Another $85 million will be paid to California and federal regulators, according to the Charlotte Observer.

Since 2011, Wells Fargo employees have created bank and credit card accounts without customers’ consent.

“Wells Fargo employees secretly opened unauthorized accounts to hit sales targets and receive bonuses,” Consumer Financial Protection Bureau Director Richard Cordray said in a statement.

Wells Fargo employees had opened roughly 1.5 million unauthorized bank accounts and approximately 500,000 credit card accounts, according to the Consumer Financial Protection Bureau.

The bank will pay $5 million in customer remediation, and as a result of a third-party review, the bank claims to have refunded customers $2.6 million for unwarranted fees.

Over the past few years, Wells Fargo has fired 5,300 employees for such illegal behavior, according CNNMoney.

This is not the first time the bank has been the center of controversy. In 2012, the bank paid $175 million to settle accusations that it had discriminated against black and Hispanic homeowners and targeted minorities for high-interest subprime mortgages.

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