September 9, 2016

Wells Fargo Fined $185,000,000 to Settle Claims Employees Opened Unauthorized Client Accounts

Do you check your bank and credit card statements?

Banking and Financial Services Giant Wells Fargo has been fined a whopping $185 million to settle claims that its employees opened up "unauthorized" banking and credit card accounts for customers in order to meet sales quotas.

In plainer English, Wells Fargo employees ... not the actual customers ... opened up additional customer bank and credit card accounts without the consent and knowledge of the customers.  Often times money from existing banking accounts was moved to the new banking accounts.

And this practice went on for five ... FIVE ... years.  Over 2 million unauthorized accounts were allegedly opened.  2 MILLION.  What does that tell you about mighty Wells Fargo's operation and employee oversight?

Some 5,300 employees, including those from rank-and-file positions up through management, were fired due to their participation in these actions.

If you have financial dealings with Wells Fargo, how safe do you feel now?  And one can only wonder:  In what other financial institutions has or is this practice happening?

4 comments:

  1. Were any of the terminated employees criminally charged?

    ReplyDelete
    Replies
    1. Good question. Not that I am aware of. Also, not aware that any of the terminated employees have been publicly named. As an aside, I wonder how many of the 5300 fired Wells Fargo employees are now working in banks or other financial institutions.

      Delete
  2. A Wells Fargo Executive has publicly blamed employees for what happened, shrugging off any responsibility. Heads need to roll in upper management and the board of directors!

    ReplyDelete
    Replies
    1. Apparently Wells Fargo senior management and key execs believe they have no responsibility for the financial institution's established sales quotas, employee oversight, or security oversight of client accounts.

      I just wonder what in the heck these senior management and key exec people do, then? And I agree, heads need to roll. If I had even a dollar in Wells Fargo, it would be gone for good.

      Delete

Thanks for sharing your comments here! Mary Rae Fouts