It finally happened. After years of being the poster child for banking "how-to-not-be-a-bank" stories, Wells Fargo is officially breathing a bit easier. The bank recently confirmed that the Consumer Financial Protection Bureau (CFPB) has terminated the massive 2022 consent order—you know, the one often referred to as the "2022 sentences" because of how heavy the restrictions were.
Honestly, this is a huge deal for CEO Charlie Scharf. He’s been trying to clean up the mess left behind by previous leadership for what feels like forever. The 2022 order was basically a final boss in their regulatory struggle, involving a record-breaking $3.7 billion settlement. That money was split between a $1.7 billion civil penalty and over $2 billion in redress for customers who got hit with junk fees, wrongful foreclosures, and repossessed cars.
Why did the CFPB walk away?
You might be wondering why a regulator would just "terminate" a punishment against a repeat offender. Well, it’s not exactly a "get out of jail free" card. It means the bank finally checked enough boxes. They had to prove they fixed the broken systems that were causing 16 million accounts to be mismanaged.
Think about the laundry list of things they had to fix:
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- Auto Loans: They were wrongly repossessing cars and misapplying payments. People were literally losing their rides to work because of a computer glitch or human error.
- Mortgages: Thousands of people were denied loan modifications they actually qualified for. Some people even lost their homes.
- Overdraft Fees: The "surprise" fees. You’d check your balance, see money, buy a sandwich, and then boom—$35 fee because of the way they sequenced transactions.
The CFPB basically said, "Okay, you've shown us you've stopped the bleeding." Since Scharf took over in 2019, the bank has seen nine different consent orders closed. It’s a slow-motion turnaround, but it's happening.
The Asset Cap: The Elephant in the Room
Even though the 2022 CFPB order is gone, Wells Fargo isn't fully "free." If you follow the stock or the banking industry, you’ve heard of the $1.95 trillion asset cap. The Federal Reserve slapped that on them in 2018. It basically prevents the bank from getting any bigger until they prove their risk management is bulletproof.
Kinda crazy, right? A bank that isn't allowed to grow.
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However, the termination of this CFPB order is a prerequisite. You can’t get the Fed to lift the cap if the CFPB is still Breathing down your neck about current abuses. Earlier in 2025, we saw the Fed actually start to lift those restrictions after years of the bank operating under a "scarlet letter." The closure of the 2022 CFPB order was the last major hurdle to prove that the "rinse-repeat cycle" of violations might actually be over.
Is the bank actually different now?
If you ask Charlie Scharf, he’ll tell you it’s a "different company." They’ve swapped out most of the senior leadership. They've overhauled how they handle complaints. But for the average person who had their car towed because of a bank error in 2021, "sorry" doesn't always cut it.
The reality is that while the legal "sentences" are being terminated, the reputational damage takes a decade to heal. Regulators are still watching. The CFPB's termination just means the specific, court-ordered chores from 2022 are done. It doesn't mean the bank is exempt from future oversight.
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What this means for your wallet
If you're a Wells Fargo customer, you’ve probably already seen the remediation checks if you were part of the 16 million affected. If you haven't received anything by now and you think you were owed money for a 2011-2022 era mistake, your window is likely closing.
Here is what actually changes for you:
- Cleaner Fee Structures: The bank is now under a microscope to ensure "surprise" overdrafts don't return.
- Better Digital Tools: Part of the fix involved massive investments in technology so that payments don't "disappear" into the wrong sub-ledger.
- Lending Availability: Now that the bank is clearing these hurdles and the asset cap is fading into the rearview, they might actually start competing harder for your mortgage or auto loan again.
Actionable Insights: Your Next Steps
Don't just take the bank's word that everything is fixed. You’ve got to be your own advocate.
- Audit Your Own Accounts: If you have an old Wells Fargo auto loan or mortgage, check your statements from the 2020-2022 period. If you see "miscellaneous fees," call them up. Mention the 2022 CFPB settlement.
- Watch the Asset Cap News: If the Fed officially declares the 2018 order fully dead later this year, expect Wells Fargo to go on a marketing blitz. This is usually when they offer high-interest savings or sign-up bonuses to grab market share.
- Use the CFPB Portal: If you still feel like you’re getting the runaround on an old issue, don't just call the bank's customer service. File a formal complaint on the CFPB website. It forces a response within 15 days, and the bank is extra sensitive about these now that they’ve finally cleared their record.
Wells Fargo is finally out from under the heaviest cloud in banking history. Whether they stay out is entirely up to how well those new risk controls actually work when nobody is looking.