Beshear: Wells Fargo to Pay KY Nearly $2.8 Million

Wells Fargo will pay Kentucky nearly $2.8 million to resolve claims the bank violated state consumer protection laws by opening unauthorized accounts and using manipulative sales practices.

Attorney General Andy Beshear said Kentucky is part of a $575 million settlement reached between Wells Fargo and 50 states and the District of Colombia.

"The settlement represents the most significant enforcement against a national bank conducted solely by state attorneys general," Beshear said. "The nearly $2.8 million we secured is a sizable amount for our General Fund, and could be used for important causes such as new textbooks for our school children."

The bank acknowledged in 2015 that its employees had opened millions of phony bank accounts for customers to meet sales goals and sold insurance and other financial products to customers who didn't need them.

Under the agreement, Wells Fargo must create teams to review and respond to customer complaints about its banking and sales practices.