Federal regulators announced today that Wells Fargo employees secretly created millions of unauthorized bank and credit card accounts without their customers requesting them or being informed, knowing since 2011. Employees even created phony PIN numbers and fake email addresses to enroll customers in online banking services, the CFPB said.The stealth accounts allowed the bank to charge millions in illicit fees, while Wells Fargo employees boosted their sales figures and earned bonuses. Wells Fargo told CNNMoney that it had fired a staggering 5,300 employees over the last few years as they discovered the misconduct—but they didn’t tell customers what had been going on. .An investigation revealed that bank employees opened over 1.5 million unauthorized deposit accounts.
The scamster employees moved funds from customers’ legitimate accounts into newly-created ones without their knowledge or consent, regulators say. Then the victims were charged for insufficient funds or overdraft fees when there wasn’t enough money in their original accounts. Wells Fargo hustlers also submitted applications for 565,443 credit card accounts without their customers’ consent.
In response, the feds have hit Wells Fargo with the largest penalty since the Consumer Financial Protection Bureau began was founded in 201, ironically right around the timeWells Fargo started cheating its customer.. The bank agreed to pay $185 million in fines, along with $5 million to refund customers.
I don’t care how much the bank pays, or even if I get some of it (The Marshalls banked there, but as soon as I get home, that’s going to end.) I don’t care of I have to keep the nest egg in an old sock. I’m not trusting these people. The managers are inept or corrupt, and the lower employees are poorly trained and supervised, as well as crooks. This is a bank. The management has high fiduciary duties. It breached all of them. Continue reading