Wells Fargo Fires Head of Consumer Lending for Violating Company Policies

Wells Fargo & Co. fired Franklin Codel, head of the bank’s consumer lending organization, for inappropriate behavior with a former team member regarding that employee’s earlier termination, the company announced in a press release.

Codel, who oversaw the bank’s four main consumer lending branches including auto finance, was dismissed for “acting in a manner that was contrary to the company’s policies and expectations of its senior leaders,” the company said.

He joined Wells Fargo in 1993 and has worked in a number of roles including head of home lending from 2015 to 2016, head of mortgage production from 2011 to 2015, and as head of mortgage finance from 2004 to 2011.

Laura Schupbach, head of Wells Fargo Dealer Services, will report to President and Chief Executive Officer Tim Sloan in the interim until a permanent successor is found, according to the release.

“Difficult as this situation is, the decision reflects our commitment to our values and culture and to executive accountability,” Sloan said. “We have a strong team in consumer lending and I am fully confident that the transition will be smooth and that its businesses will continue to operate normally in serving our customers.”

The company said Codel’s dismissal was not related to operations of consumer lending, the servicing of its customers, its financial results, or sales practices at the company, according to the release.

Earlier this week, Wells Fargo expanded the scope of a previous settlement it reached with the Department of Justice in 2016. The bank agreed to pay an additional $5.4 million to 450 servicemembers whose vehicles were illegally repossessed under the Servicemember Civil Relief Act and not identified in the previous settlement.

In total, the company paid $29.4 million for the infraction, including $10.1 million in compensation to 863 servicemembers.