What You Need to Know About the $2 Billion Wells Fargo Misconduct Settlement and Who Has Received Their Share

Individuals who are owed money from the $2 billion settlement that Wells Fargo has agreed to pay out to customers affected by certain banking practices may soon receive their funds.

On Tuesday, one of the country's four largest banks reached an agreement with the Consumer Financial Protection Bureau to address customer mistreatment in regards to auto loans, deposit accounts, and mortgage loans, which impacted approximately 16 million accounts.

Wells Fargo has been ordered to pay a $1.7 billion civil penalty, which is the largest penalty ever imposed by the Consumer Financial Protection Bureau.

A spokesperson from Wells Fargo informed CNBC that they have already been in contact with numerous customers who could have been affected by the issues addressed in the settlement, and they are continuing to reach out.

If you are one of the customers affected by the issue, Wells Fargo has stated that you will either have already received your portion of the $2 billion or you will be contacted by the bank. No action is required on your part.

The Consumer Financial Protection Bureau (CFPB) reported that Wells Fargo customers were charged illegal fees and interest on auto and mortgage loans, had their vehicles wrongfully repossessed, and had payments to auto and mortgage loans misapplied. Furthermore, the CFPB stated that Wells Fargo charged consumers unauthorized overdraft fees and other incorrect charges to checking and savings accounts, and improperly blocked some accounts.

Over 11 million customer accounts have been given more than $1.3 billion in connection to auto loan issues. An additional 5 million customers with deposit accounts are being compensated with $500 million, including $205 million for surprise overdraft fees. Furthermore, thousands of customers with mortgages will receive a portion of the $195 million, according to a spokesperson from the CFPB.

The amount of compensation for each affected consumer varies depending on the situation. Those whose vehicles were taken away in error are eligible for a minimum of $4,000, though the amount could be higher. Those whose deposit accounts were frozen without cause will receive $150.

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Charlie Scharf, Wells Fargo CEO, stated in the company's press release regarding the settlement that they and their regulators have identified a number of unacceptable practices that they have been actively working to rectify and provide customer compensation where appropriate.

Scharf stated that this expansive agreement is a significant step forward in their efforts to modify the operations of Wells Fargo and to move past these issues.