Wells Fargo has agreed to a $3.7 billion settlement with the Consumer Financial Protection Bureau over customer abuses tied to bank accounts, mortgages and auto loans, the regulator said Tuesday.

The bank was ordered to pay a $1.7 billion civil penalty and "more than $2 billion in redress to consumers," the CFPB said in a statement.

"The bank's illegal conduct led to billions of dollars in financial harm to its customers and, for thousands of customers, the loss of their vehicles and homes," the agency said in its release. "Consumers were illegally assessed fees and interest charges on auto and mortgage loans, had their cars wrongly repossessed, and had payments to auto and mortgage loans misapplied by the bank."

CFPB Director Rohit Chopra said that Wells Fargo's "rinse-repeat cycle of violating the law" hurt millions of American families and that the settlement was an "important initial step for accountability" for the bank.

Shares of the bank fell 2.5% in premarket trading.

In October, the bank set aside $2 billion for legal, regulatory and customer remediation matters, igniting speculation that a settlement was nearing.  

The resolution lifts one overhang for the bank, which has been led by CEO Charlie Scharf since October 2019. But others remain: Wells Fargo is still operating under a series of consent orders tied to its 2016 fake accounts scandal, including one from the Fed that caps its asset growth.

This story is developing. Please check back for updates.