Wells Fargo currently operates under four separate consent orders from federal regulators

Wells Fargo has agreed to four consent orders — formal agreements with federal banking regulators that require the bank to fix specific problems and submit to ongoing oversight. These orders come from the Office of the Comptroller of the Currency (OCC), the Federal Reserve, and the Consumer Financial Protection Bureau (CFPB). Each order addresses different violations or unsafe practices that regulators found during examinations or investigations.

A consent order is not a fine, though fines often accompany them. It is a binding agreement that says: "You broke this rule. Here is what you must do to fix it. We will check on your progress." The bank must spend money to comply, hire staff to oversee the work, and report back to regulators on a schedule. If Wells Fargo fails to meet the terms, regulators can impose additional penalties or restrictions.

The four orders span different areas of the bank's operations — from how it handles customer accounts and sales practices to how it manages risk and treats borrowers. Some orders have been in place for years; others are more recent. Understanding which regulators issued them and what they require helps explain why Wells Fargo's operations look different from some competitors.

Key Takeaways

  • Wells Fargo operates under four consent orders from the OCC, Federal Reserve, and CFPB, each addressing different regulatory violations.
  • Consent orders require the bank to fix specific problems, hire compliance staff, and report progress to regulators on a set schedule.
  • The orders cover sales practices, account management, risk management, and treatment of borrowers across different business lines.
  • Consent orders remain in place until regulators determine the bank has fixed the underlying problems and can operate safely without the agreement.

The OCC consent order from 2016

The Office of the Comptroller of the Currency issued a consent order to Wells Fargo in April 2016 following the discovery of unauthorized accounts. Employees had opened deposit and credit card accounts in customers' names without permission to meet sales targets. The OCC found that the bank's sales practices, management oversight, and internal controls had failed to prevent this conduct.

This order required Wells Fargo to hire a third-party consultant to review its sales practices across the entire bank, strengthen its governance structure, and implement new controls to prevent similar misconduct. The bank also had to improve how it trains employees and how it monitors whether employees are following rules. The order remains in effect and Wells Fargo continues to report on its progress to the OCC.

The Federal Reserve consent order from 2018

The Federal Reserve issued its consent order in February 2018, also tied to the unauthorized accounts scandal and broader concerns about the bank's risk management. The Fed found that Wells Fargo's board and senior management had not maintained adequate oversight of the bank's operations and had not created a strong enough culture of compliance.

The Fed's order is broader than the OCC's. It requires Wells Fargo to strengthen its board governance, improve how it identifies and manages risks across the bank, enhance its compliance program, and fix deficiencies in how it handles customer complaints. The order also restricts the bank's ability to grow — Wells Fargo cannot increase its total assets beyond the level they were at when the order was issued without Fed approval. This restriction remains one of the most visible consequences of the consent order.

The CFPB consent order from 2016

The Consumer Financial Protection Bureau issued its consent order in September 2016, also addressing the unauthorized accounts and related consumer harm. The CFPB found that Wells Fargo had violated consumer protection laws by opening accounts without permission and charging fees on those accounts.

This order required Wells Fargo to identify all customers harmed by the unauthorized accounts, refund fees and interest they paid, and provide compensation for other damages. The bank had to hire an independent monitor to oversee its compliance with the order and report findings to the CFPB. Wells Fargo also had to implement new controls to prevent similar violations and improve how it handles customer disputes.

The OCC consent order from 2020

The OCC issued a second consent order in December 2020 following an investigation into how Wells Fargo handled mortgage and auto loan customers during the pandemic. The bank had failed to timely process loan modifications and forbearance requests, leaving borrowers without relief they were may have access to to receive.

This order requires Wells Fargo to remediate borrowers who were harmed — refunding fees, reducing principal, or providing other compensation depending on the situation. The bank must also improve its processes for handling loan modifications and forbearance requests going forward, hire additional staff to handle the volume of requests, and report regularly to the OCC on its progress. This order is narrower than the others but addresses a specific area where the bank's operations fell short of regulatory standards.

How long consent orders typically last

A consent order stays in place until the regulator determines that the bank has fixed the underlying problems and can operate safely without the agreement. There is no set timeline — some orders last two years, others last ten or longer. The regulator periodically reviews the bank's progress and decides whether to lift the order, modify it, or extend it.

For Wells Fargo, the 2016 orders from the OCC and CFPB have been in place for years because the underlying issues — sales culture, governance, and compliance — are complex and take time to fix. The Federal Reserve's asset cap, tied to its 2018 order, has become a defining feature of Wells Fargo's business strategy. The bank must demonstrate sustained improvement across multiple areas before regulators will consider lifting these orders.

What consent orders mean for Wells Fargo customers

Consent orders do not directly change how you use a Wells Fargo account, but they do shape the bank's priorities and spending. Wells Fargo has invested heavily in compliance staff, technology, and third-party monitors to meet the terms of its orders. These costs are built into the bank's operations.

The orders also mean that Wells Fargo faces closer scrutiny than many competitors. Regulators examine the bank more frequently and in more detail. If the bank fails to meet the terms of an order, regulators can impose fines, restrict the bank's activities further, or in extreme cases, force changes in management or board composition. This ongoing oversight is intended to protect customers by ensuring the bank maintains safe and sound practices.

Frequently Asked Questions

Can Wells Fargo get out of these consent orders?

Yes, but only when regulators determine the bank has fixed the problems the order was meant to address. Wells Fargo must demonstrate sustained compliance over time — typically years, not months. The bank can request that a regulator lift an order, but the regulator makes the final decision based on examination findings and the bank's track record.

Do consent orders mean Wells Fargo is unsafe?

Consent orders indicate that regulators found specific violations or unsafe practices that needed to be corrected. They do not mean the bank is about to fail or that deposits are at risk. The FDIC insures deposits up to $250,000 per account holder per bank, regardless of whether the bank is under a consent order. The orders exist to fix problems before they become systemic.

Are there other banks under consent orders?

Yes. Many large banks have been under consent orders at various points. Some have multiple orders from different regulators, similar to Wells Fargo. Consent orders are a standard regulatory tool when examiners find violations. The number and scope of orders vary depending on what problems regulators found and how quickly the bank fixes them.

How do I know if a consent order affects my account?

Most consent orders do not directly affect how you use your account. However, if you were harmed by a specific violation — such as unauthorized accounts or denied loan modifications — you may be part of a remediation program. Wells Fargo sends notices to affected customers. You can also contact the bank directly or check the CFPB's website for information about specific consent orders and remediation programs.

What happens if Wells Fargo violates a consent order?

Regulators can impose additional fines, require the bank to hire an independent monitor, restrict the bank's activities, or extend the order. In serious cases, regulators can remove bank leadership or force structural changes. The threat of escalating penalties is what makes consent orders enforceable — the bank has strong incentive to comply.