New York: US officials announced Tuesday a $3.7 billion settlement with Wells Fargo over an array of "illegal activity" that burdened customers with wrongful home foreclosures and other problems.

Wells Fargo will pay $2 billion to compensate customers and $1.7 billion in civil fines under the Consumer Financial Protection Bureau settlement.

Wells Fargo called the agreement an "important milestone" in the bank's progress after a series of scandals.