San Francisco-based U.S. bank Wells Fargo on Thursday settled a dispute with the Navajo Nation and agreed to pay $6.5 million after the tribe launched a lawsuit against the bank's “fraudulent and illegal” practices in 2017.
“Wells Fargo’s predatory actions defrauded and harmed the Nation,” stated Navajo Nation President Jonathan Nez, according to a report at Navajo Times.
“We held Wells Fargo accountable for their actions and we will continue to hold other companies accountable if their business practices do not respect our people — this puts other companies on notice that harmful business practices against the Navajo people will not be tolerated,” Nez added.
The Navajo Native American territory covers about 17,544,500 acres, with portions in northeastern Arizona, southeastern Utah, and northwestern New Mexico. It is the largest land area retained by a Native American tribe, with a population of around 350,000.
The Navajo Nation stated that Wells Fargo has systematically abused their trust and “preyed on” its members.
The tribe's complaint emphasized a long pattern of misconduct by Wells Fargo at least from 2006 through 2013 and brought claims under the Federal Consumer Financial Protection Act (CFPA).
In a statement, Wells Fargo -- which had to let go of two CEOs over scandals -- said the agreement shows the bank’s “commitment to make things right regarding past sales practices issues”.
The bank has been mired in a number of scandals over the years, many of which involve overzealous sales practices and targets at the expense of consumers.
