Wells Fargo & Company · banking · consumer protection · regulatory enforcement · criminal prosecution
What did Wells Fargo admit about opening accounts without customer authorisation?
Wells Fargo resolved the matter in 2020 with a $3 billion payment that covered a three year deferred prosecution agreement, a civil settlement and a $500 million SEC penalty, and it admitted a statement of facts saying millions of accounts or products were provided to customers under false pretenses or without consent from 2002 to 2016. It was not charged or convicted. The Federal Reserve lifted its asset growth cap on 3 June 2025 and terminated the related 2018 enforcement action on 5 March 2026. As of 30 October 2026 no public enforcement order on this matter is identified as still in force.
Last verified 30 October 2026. United States
The record at a glance
| What was alleged? | The CFPB found in 2016, and the Justice Department and SEC stated in 2020, that Wells Fargo employees opened deposit and credit card accounts without customer authorisation under pressure from sales goals, between 2002 and 2016, and the SEC alleged the bank misled investors about its cross-sell metric from 2012 to 2016.1,2,3 |
|---|---|
| Who made the claim? | US Department of Justice, US Securities and Exchange Commission and Consumer Financial Protection Bureau, 21 February 2020 |
| How did Wells Fargo respond? | Wells Fargo accepted the 2020 resolutions. Its chief executive Charles Scharf described the conduct as reprehensible and said there was still more work the company must do to rebuild the trust it lost. When the asset cap was lifted in 2025 he called it a pivotal milestone in the company's journey to transform Wells Fargo.4,5 (the subject's position) |
| Was there an official finding? | In 2020 Wells Fargo admitted a statement of facts in a deferred prosecution agreement describing sales practices that included opening accounts without customer authorisation.1 The Federal Reserve lifted the asset cap on 3 June 2025 and terminated the 2018 enforcement action on 5 March 2026.6,7 |
| Was liability determined? | Admitted by the subject. Admitted statement of facts under a deferred prosecution agreement, which is not a conviction, together with settled civil and regulatory actions by the Justice Department, SEC, CFPB and others. No criminal conviction of the company.1,2,3 |
| What changed later? | As of 30 October 2026 the Federal Reserve's 2018 enforcement action, including the asset cap, has been terminated (5 March 2026) and Bloomberg Law reported that Wells Fargo had no outstanding public consent orders. The three year term of the 2020 deferred prosecution agreement has run, but no public Justice Department record of its formal completion was located.1,7,10 |
| When was this checked? | 30 October 2026 |
What was alleged?
The CFPB found in 2016, and the Justice Department and SEC stated in 2020, that Wells Fargo employees opened deposit and credit card accounts without customer authorisation under pressure from sales goals, between 2002 and 2016, and the SEC alleged the bank misled investors about its cross-sell metric from 2012 to 2016.1,2,3
Made by US Department of Justice, US Securities and Exchange Commission and Consumer Financial Protection Bureau on 21 February 2020.
What did Wells Fargo say?
Wells Fargo accepted the 2020 resolutions. Its chief executive Charles Scharf described the conduct as reprehensible and said there was still more work the company must do to rebuild the trust it lost. When the asset cap was lifted in 2025 he called it a pivotal milestone in the company's journey to transform Wells Fargo.4,5
"reprehensible and wholly inconsistent with the values on which Wells Fargo was built."
Charles W. Scharf, CEO, Wells Fargo (company press release), 21 February 2020. This is the subject's own account, not a finding.
What do independent records show?
Consent order, Docket No. 2016-CFPB-0015
Consumer Financial Protection Bureau, 8 September 2016
The CFPB found employees opened accounts without authorisation, driven by sales targets and incentives, with the bank's own analysis identifying more than two million deposit and credit card accounts that may not have been authorised. It imposed a $100 million civil penalty and full restitution. The CFPB lists the order as expired, terminated or dismissed.3
2018 enforcement action (consent cease and desist order), dated 2 February 2018 per the Federal Reserve page address
Board of Governors of the Federal Reserve System, 2 February 2018
Required improved governance and risk management with third party reviews and imposed a limit on growth in total assets until conditions were met.6,7
Deferred prosecution agreement and FIRREA civil settlement
US Department of Justice (US Attorneys for the Central District of California and Western District of North Carolina, Civil Division), 21 February 2020
Wells Fargo paid $3 billion in combined criminal, civil FIRREA and SEC resolutions. Under a three year deferred prosecution agreement concerning potential false bank records and identity theft offences, it admitted a statement of facts stating that millions of accounts or products were provided under false pretenses or without consent, that it collected millions of dollars in fees and interest to which it was not entitled, and that it harmed the credit ratings of certain customers.1
Settled cease and desist proceeding, Release No. 34-88257
US Securities and Exchange Commission, 21 February 2020
The SEC found that Wells Fargo misled investors about its Community Bank cross-sell strategy from 2012 to 2016 in violation of Exchange Act antifraud provisions, with a $500 million civil penalty for distribution to investors. The release does not state whether Wells Fargo admitted the findings.2
Termination of 2016 sales practices consent order (as announced by Wells Fargo)
Office of the Comptroller of the Currency, 15 February 2024
Wells Fargo announced on 15 February 2024 that the OCC had terminated the consent order it issued in 2016 regarding sales practices misconduct. The OCC termination document and its exact date were not reviewed.8,9
Press release removing asset growth restriction
Board of Governors of the Federal Reserve System, 3 June 2025
The Board said Wells Fargo had met all conditions for lifting the asset growth restriction, while other provisions of the 2018 action stayed in place.6
Termination of 2018 enforcement action
Board of Governors of the Federal Reserve System, 5 March 2026
The Board terminated the 2018 action after determining the bank had met all required conditions.7
What was established?
- In 2020 Wells Fargo admitted a statement of facts in a deferred prosecution agreement describing sales practices that included opening accounts without customer authorisation.1
- The Federal Reserve lifted the asset cap on 3 June 2025 and terminated the 2018 enforcement action on 5 March 2026.6,7
Distinctions that matter here
- A deferred prosecution agreement is not a conviction, even where the company admits a statement of facts.
- No criminal charge was filed against Wells Fargo. Under the deferred prosecution agreement the Justice Department agreed not to prosecute during its three year term if the company met its conditions.
- Lifting the asset cap in 2025 did not end the 2018 Federal Reserve action, which ended in 2026.
Was liability determined?
Admitted by the subject. Admitted statement of facts under a deferred prosecution agreement, which is not a conviction, together with settled civil and regulatory actions by the Justice Department, SEC, CFPB and others. No criminal conviction of the company.1,2,3
What remains unresolved?
- No public Justice Department record confirming completion of the three year deferred prosecution agreement was located.
- Separate actions against individual former executives and other Wells Fargo consumer matters, such as the CFPB's 2022 order on auto loans, mortgages and deposits, are outside this matter.
What is the current status?
As of 30 October 2026 the Federal Reserve's 2018 enforcement action, including the asset cap, has been terminated (5 March 2026) and Bloomberg Law reported that Wells Fargo had no outstanding public consent orders. The three year term of the 2020 deferred prosecution agreement has run, but no public Justice Department record of its formal completion was located.1,7,10
As of 30 October 2026. No next proceeding is scheduled in the records we found.
Timeline
- CFPB consent order with $100 million penalty.3
- Federal Reserve enforcement action imposes asset growth restriction.6
- $3 billion DOJ and SEC resolution announced.1,2
- Federal Reserve lifts the asset cap.6
- Federal Reserve terminates the 2018 enforcement action.7
Sources
- US Department of Justice, Office of Public Affairs, Wells Fargo Agrees to Pay $3 Billion to Resolve Criminal and Civil Investigations into Sales Practices Involving the Opening of Millions of Accounts without Customer Authorization, 21 February 2020 · document record Government, parliamentary or audit document
- US Securities and Exchange Commission, Wells Fargo to Pay $500 Million for Misleading Investors About the Success of Its Largest Business Unit (Press Release 2020-38), 21 February 2020 · document record Court, legislation, official register or regulator record
- Consumer Financial Protection Bureau, Wells Fargo Bank, N.A. (2016) enforcement action, 8 September 2016 · document record Court, legislation, official register or regulator record
- Wells Fargo & Company via SEC EDGAR, Wells Fargo settlement press release (Exhibit 99.1 to Form 8-K), 21 February 2020 · document record Filing or formal statement by the subject
- Wells Fargo & Company, Wells Fargo Confirms that the Federal Reserve Has Removed the Limits on Growth in Total Assets Imposed in its 2018 Consent Order, 3 June 2025 · document record Filing or formal statement by the subject
- Board of Governors of the Federal Reserve System, Federal Reserve Board announces Wells Fargo is no longer subject to asset growth restriction, 3 June 2025 · document record Court, legislation, official register or regulator record
- Board of Governors of the Federal Reserve System, Federal Reserve Board announces termination of 2018 enforcement action against Wells Fargo, 5 March 2026 · document record Court, legislation, official register or regulator record
- Wells Fargo & Company (Business Wire), Wells Fargo Confirms Termination of 2016 OCC Sales Practices Consent Order, 15 February 2024 · document record Filing or formal statement by the subject
- American Banker, Wells Fargo clears another hurdle as OCC terminates 2016 order, 15 February 2024 Independent reporting
- Bloomberg Law, Wells Fargo Free of Consent Orders for First Time in 15 Years, 5 March 2026 Independent reporting
Revision history
- 30 October 2026: First published after source verification.
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