"The Bureau found that Wells Fargo violated the Consumer Financial Protection Act (CFPA) in the way it administered a mandatory insurance program related to its auto loans," the release said. "The bureau also found that Wells Fargo violated the CFPA in how it charged certain borrowers for mortgage interest rate-lock extensions."
The settlement requires Wells Fargo to repay affected customers and also pay a $1 billion penalty, the release said.
The case is not directly connected to an earlier scandal in which the bank admitted that employees opened more than 3 million bank and credit-card accounts without customers’ authorization.
The $1 billion fine will be split between the bank’s principal regulator, the Office of the Comptroller of the Currency, and the CFPB, according to the statement.
In the earlier scandal, Wells Fargo came under fire in September 2016 when it acknowledged media reports that employees secretly created accounts on customers’ behalf in order to boost sales numbers. The company paid a $185 million fine to US regulators in connection with the row.