Wells Fargo freed from six-year-old consent order

Wells Fargo is dealing with one less regulatory headache now that a 2015 enforcement action related to the sale of identity protection products has been lifted.

The six-year-old consent order was terminated in early December, the Office of the Comptroller of the Currency said Thursday.

The consent order was issued for what the OCC described as unfair billing practices in connection with various identity protection products the bank offered between 2004 and 2014. Wells Fargo charged some customers the full fee even though they were not receiving all of the credit monitoring services that were supposed to come with the products, according to the consent order.

The $1.9 trillion-asset company said in a press release Thursday that its top priority is building a risk and control infrastructure that is appropriate for a bank of its size and complexity.

“The termination of the 2015 consent order is a step in this work, as the company continues to focus on resolving legacy regulatory issues,” the company said.

Last January, the OCC terminated another 2015 consent order with Wells Fargo that had required the bank to improve its controls for combating money laundering. And in September, a 2016 enforcement action with the Consumer Financial Protection Bureau, which related to the bank’s retail sales practices, expired.

There have also been regulatory setbacks. Last spring, Wells disclosed that it was under investigation by the CFPB in connection with past disclosures to consumers regarding the minimum debit card use that was required to result in a waiver of monthly fees. And in the fall, the OCC imposed a $250 million fine on Wells, citing continued problems in its mortgage unit as well as violations of a 2018 consent order.

In addition, the San Francisco bank continues to operate under a 2018 asset cap with the Federal Reserve, which prevents it from expanding its balance sheet significantly.

On Tuesday, Wells announced that longtime executive Derek Flowers will be its next chief risk officer, succeeding Amanda Flowers, whose retirement was announced earlier this month.

During the company’s fourth-quarter earnings call last week, CEO Charlie Scharf said the company is making progress in resolving some regulatory issues. He described the process as a “multiyear effort” in which there will likely be setbacks.