Wells Fargo (NYSE:WFC) will have to pay the Consumer Financial Protection Bureau (CFPB) $3.7 billion, the agency announced on Tuesday.
For the "widespread mismanagement of auto Loans, mortgages, and deposit accounts."
Consumers would receive more than $2 billion in compensation from Wells Fargo.
And a $1.7 billion civil fine for breaking the law across many of its biggest product categories.
Bank, according to CFPB, "erroneously foreclosed on houses and frequently applied loan payments incorrectly.
Additionally, automobiles that were unlawfully repossessed, erroneously imposed fees and interest, unexpected overdraft fees,
Over 16 million consumer accounts are affected by other illicit behaviour in addition."
"Wells Fargo will pay restitution to the approximately 16 million affected consumer accounts and a $1.7 billion fine in accordance with the provisions of the ruling.
The fine will be added to the CFPB's Civil Penalty Fund, which will utilise it to help victims.
Director of the CFPB Rohit Chopra said: "Millions of people have been damaged by Wells Fargo's pattern of legal violations.