Wells Fargo & Co. to pay the Navajo Nation $6.5 million to resolve a lawsuit over “predatory and illegal practices” by the bank, the Native American tribe mentioned on Thursday.
The Navajo Nation prosecuted Wells Fargo in federal and tribal courts in 2017, asserting the San Francisco-based bank had opened illegal accounts for susceptible tribe members as a part of the potentially millions of faux accounts opened by bank staff nationwide.
The settlement “places other companies on discovering that harmful enterprise practices against the Navajo people will not be permitted,” Navajo Nation President Jonathan Nez stated in the assertion, which referred to Wells Fargo’s “long campaign of predatory and illegal practices.”
Wells Fargo mentioned in a statement that the settlement demonstrates the bank’s “commitment to make issues right regarding previous sales practices issues.”
The settlement with the in 2018 – Navajo Nation adopted a $575 million deal with US states over claims that Wells Fargo initiated phony buyer accounts and improperly cited and imposed customers for financial products.
The agreement comes as Wells Fargo continues its try to overcome the fallout from its earlier practices. The bank stated last year it had “re-established” itself, however, has continued to face harsh criticism from politicians and client advocates.
The bank has seen two chief executives leave the agency within the wake of the collection of scandals and is still seeking a replacement for former CEO Timothy Sloan, who abruptly stepped down in March.