Wachovia settles marketing case for $163 million
Wachovia Corp., completing a previously announced settlement, will pay an estimated $163 million to settle federal allegations that it failed to stop telemarketers from taking advantage of thousands of elderly consumers, authorities said Friday.
The Wachovia case, the subject of an 18-month investigation by bank regulators, was first announced in April. The parties spent several months working out some of the settlement's details.
Federal officials say the Charlotte, N.C.-based bank didn't act quickly enough to block telemarketers and payment processors from accessing customer accounts.
The marketers obtained customers' bank account numbers while selling products including vouchers for discount travel and groceries and medical discount plans.
Wachovia spokeswoman Christy Phillips-Brown said the company regretted the situation and is pleased to have the matter resolved.
The bank has agreed to be acquired by Wells Fargo & Co. for about $11.7 billion. Federal antitrust regulators on Friday cleared the deal, which is still subject to shareholder approval. San Francisco-based Wells Fargo hopes to complete the deal by the end of the fourth quarter.
Copyright 2008 AP Features
