By John Poirier

WASHINGTON (Reuters) - Wachovia Bank agreed to pay as much as $144 million to settle allegations it failed to help consumers who fell prey to schemes operated by telemarketers that maintained accounts at the bank, regulators said on Friday.

The bank, the country's fourth largest, agreed to pay $18.9 million as part of a consent order, including a $10 million civil penalty and $8.9 million for consumer education programs, according to the Office of the Comptroller of the Currency.

The OCC said bank officials were aware of what was going on as well as profits for the bank, but failed to take quick action.

Potential claims by thousands of consumers, including many elderly, could be as much as $125 million, the OCC said in a statement, but the actual claims could fall short of that amount.

Many of the consumers hurt by third-party telemarketers and payment processors have already been reimbursed by those companies, the bank regulator said.

Wachovia Corp's (WB.N: Quote, Profile, Research) bank was under investigation by bank regulators for 18 months over its relationships with payment processors and telemarketers that obtained bank information from consumers who were offered questionable products and services, including medical discount plans and travel vouchers.

The telemarketers, which maintained accounts at Wachovia, used information obtained from the consumers to create checks that were deposited without the approval of the individuals.

U.S. Rep Edward Markey, a senior member on the House Energy and Commerce Committee, said the settlement shortchanges elderly fraud victims because only a fraction of the victims might be reimbursed.