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09-09-2016, 09:49 AM #1
Wells Fargo Settles Customer Fraud Case
Wells Fargo settled with the CFPB for $190 million related to defrauding customers out of excess fees. The allegation was that Wells Fargo employees pushed or signed customers up without permission for fee generating accounts.
Part of the settlement includes $5 million to be paid to customers who were allegedly pushed into fee charging accounts they never requested.
Not sure from what I read on how customers are supposed to collect money to recover inappropriate fees. But if you are Wells Fargo customer and incurred fees for accounts you never requested, you may want to look into this.
09-09-2016, 10:48 AM #2
That is a costly sales scam. But I would have liked to see more money go to the victims, and less to the regulators.
09-09-2016, 11:01 AM #3
Wells Fargo fired 5,300 employees over this. I know they have over 100,000 employees. But that number is astounding. This really is a HUGE story. And good for the CFPB for putting a stop to the fleecing of Wells Fargo consumers.
09-10-2016, 01:19 PM #4
Wells Fargo fired about 5% of their employees for opening bogus credit cards and checking accounts. They also claimed to be taking full responsibility for this scam.
But have they promised to stop basing employee performance reviews and bonuses on the number of new accounts they open?
If Wells Fargo really wants to stop this behavior and own up to the mistakes made, this needs to stop. Maybe then their employees will stop pushing accounts on their customers that those customers don't want and don't need.
09-12-2016, 07:55 AM #5
Affected Customers will be Contacts by Wells Fargo
The CFPB says that Wells Fargo will contact customers who were inappropriately touted to high fee accounts.
If you believe you were affected, but are not contacted by Wells Fargo, you can contact the CFPB by calling their hotline number: 855-411-2372.Bad Credit? Read This >> The Ultimate List of Resources For Building Your Credit
09-12-2016, 12:08 PM #6
Does this settlement only apply to California customers? I thought that is what I read.
09-12-2016, 04:24 PM #7
According to Zero Hedge:
Carrie Tolstedt, the Wells Fargo executive who was in charge of the unit where employees opened more than 2 million largely unauthorized customer accounts—a seemingly routine practice that employees internally referred to as “sandbagging”— is leaving the giant bank with an enormous pay day, some $124.6 million.
09-14-2016, 03:33 PM #8
I'm just glad they finally stopped the incentive program that got them in this mess. Too bad they couldn't find it in their hearts to fire any executives over it. Instead, just the regular Joes in the sales force took the pain.
09-14-2016, 05:12 PM #9
I am a Wells customer, and I awoke this morning to a letter (well, email) from their CEO. Check it out, and decide what you think.
To our valued customers,
You may have seen news recently that some Wells Fargo customers received products and services that they did not want or need.
Every day we strive to get things right. In this instance we did not – and that is simply not acceptable.
So we are making it right.
The first step we've taken is to fully reimburse any customers who were affected by these actions.
We have been making some changes to how we do business over the last several years to ensure we are always aligned with our customers' interests. To that end, the second change is to ensure Team Members in our Retail Bank are compensated on what matters most: delivering great experiences and ensuring positive outcomes – not on product sales. For more details on this, go to wellsfargo.com/commitment.
Last week's news did not reflect Wells Fargo at its best. Your trust and confidence in us is something we hold near and dear. I know I speak for our 268,000 dedicated Team Members when I thank you for giving us the opportunity to continue serving you and supporting your financial future.
Chairman and CEO, Wells Fargo Bank
That letter is nicer than many of his public pronouncements, where Stumpf passed blame onto others and tried to deflect it from himself.
09-15-2016, 01:29 PM #10
If you are reading this thread, you should be thinking about joining your local credit union.
Small banks have a lot to offer.
They are not trying to push lots of high fee products on you. When executives mess up badly, they are shown the door. Not showered with a golden parachute. And you get actually service.
At big banks, executives escape blame. And the little people who were just following the incentives shoulder all the burdens. And, of course, the customers come last - if at all.