Wells Fargo has rightly concluded that it should overhaul a lot of its sales practices after the fake account fiasco that cost the company $185 million in refunds and penalties and could cost it $4 billion in lost business. One change that the bank announced today is that it will no longer give branches a heads-up a day before corporate inspectors are scheduled to arrive. [More]
wells fargo
Former Wells Fargo Employees: Borrowers Forced To Pay For Bank’s Mortgage Delays
By 1.23.17
Even though you can now get an initial approval for a home loan in a few minutes, the actual underwriting process can take so long that the interest rate you were promised at the beginning has since increased. If the delay is the borrower’s fault, they can usually pay a hefty fee to extend that lower rate, but if the bank caused the delay, it usually eats that charge. However, some former Wells Fargo workers say the bank forced borrowers to pay for these rate extensions even when it was Wells’ fault. [More]
Troubled Mall Sells To Its Own Lenders For $100
By 1.19.17 — Updated: 1.21.17
The Galleria at Pittsburgh Mills is pretty typical for a troubled mall: it opened in 2005, but is now financially distressed. It didn’t have enough customers to support its retailers. While the mall still has anchors like Macy’s, JCPenney, and Dick’s, it recently sold at auction for $100. Sort of. [More]
Wells Fargo Overhauls Teller Pay System After Fake Account Fiasco
By 1.11.17 — Updated: 1.23.17
Shortly after federal regulators fined Wells Fargo $185 million for its decades-long fake account fiasco perpetrated by employees who opened more than two million unauthorized accounts in order to meet high-pressure sales goals, the company said it would ditch the incentive system. Now, the bank has finally outlined its new approach to compensating employees that shifts the focus away from upselling add-on products and toward improved customer satisfaction. [More]
Wells Fargo Customers: Bank’s Contract Can’t Be Used To Allow Illegal Activity
By 12.28.16
Even though Wells Fargo has admitted that bank employees opened millions of fraudulent, unauthorized accounts in customers’ names, the bank has avoided or delayed class-action lawsuits over this fake account fiasco by citing terms in customer contracts that prevent account-holders from bringing lawsuits against Wells. However, one group of customers is arguing that the bank can’t use these contracts to shield itself from being held liable for illegal activity. [More]
Pizzas, Pot & Fields Of Gold: 7 Important Firsts In Online Retail History
By 12.16.16
How long have you been shopping online? People have been using electronic networks to buy and sell things for 40 years, and the first commercial transactions over the web took place over 20 years ago. Compared to bricks-and-mortar retail, where it took more than a century to evolve from catalogs, boutiques, and haberdasheries to big box stores, online retail has seen a significant amount of innovation in a very short amount of time. [More]
Wells Fargo Fake Account Lawsuit On Hold While Bank Tries To Force Case Out Of Court
By 12.13.16
As we mentioned last week, Wells Fargo — the bank where employees opened millions of unauthorized accounts in customers’ names — has been trying to wriggle out of class action lawsuits involving the fake account fiasco by forcing each individual customer into private arbitration. This afternoon, the judge in one lawsuit put the case on hold until he decides whether or not Wells gets to play this “get out of jail free” card. [More]
Prudential Employees: We Were Fired For Blowing Whistle On Alleged Wells Fargo Fraud
By 12.12.16
The taint of scandal surrounding the Wells Fargo fake account fiasco has spread to Prudential, with three employees of the insurance giant claiming they were retaliated against — and ultimately fired — for trying to blow the whistle on possible insurance fraud being perpetrated by Wells Fargo employees. [More]
Wells Fargo Already Playing Its ‘Get Out Of Jail Free’ Card To Avoid Lawsuits Over Fake Accounts
By 12.7.16
Wells Fargo is facing multiple lawsuits from customers and employees over the long-running fake account fiasco that saw more than two million bogus, unauthorized accounts being opened in customers’ names. Even though lawmakers and consumer advocates have repeatedly asked the bank to not sidestep its liability by using an often-ignored clause in its customer agreement, lawyers for Wells Fargo have already begun to play that “get out of jail free” card. [More]
Proposed “Justice For Victims Of Fraud Act” Would Take Away Wells Fargo’s Get Out Of Jail Free Card
By 12.1.16
Wells Fargo has admitted that millions of its customers were victimized by bank employees who opened unauthorized accounts in these customers’ names, but those fake account fiasco victims can’t file lawsuits against the bank because of clauses buried in their account contracts. A newly introduced piece of legislation would prevent Wells Fargo from using that clause to minimize its responsibility under the law. [More]
Feds Warn Banks: High-Pressure Incentives Can Lead To Another Wells Fargo Fiasco
By 11.29.16
As Wells Fargo continues to dig itself out of a years-long — if not decade-long — fake account fiasco perpetrated by employees under strain from high-pressure sales goals, federal regulators are warning other financial institutions that these sorts of programs could harm consumers and possibly lead to stiff penalties. [More]
Amid Fake Account Fiasco, Wells Fargo Must Now Get Permission to Hire Or Fire Executives
By 11.21.16
Two months after federal regulators imposed a $185 million fine and other sanctions against Wells Fargo for its fake account fiasco, one of those agencies — the Office of the Comptroller of the Currency — has rolled back some of the terms of its deal, signaling it will require more oversight of the company. [More]
New Account Openings At Wells Fargo Drop 44% A Month After Fake Account Fiasco
By 11.18.16
Since Wells Fargo’s decade-long fake account fiasco came to light in September, analysts have warned that revelations about bank staffers opening millions of unauthorized accounts would result in consumers shying away from Wells. Those analysts may be right, with the bank confirming that new customer accounts fell dramatically during October. [More]
You Could Be Eligible For These Class Actions And Not Even Know It
By 11.7.16 — Updated: 11.8.16
The class action system is slow, profitable for lawyers, and flawed, but for now it’s the best tool that ordinary consumers have for holding companies that have wronged a lot of people responsible with a relatively small financial impact. Not all suits are well publicized, though, and you might not know that you’re eligible. Did you buy a computer between 2003 and 2008? How about “natural” cleaning products or lavender-scented baby products? [More]
Lawmakers: Wells Fargo Employee Files Show Bank Knew Of Fake Account Fiasco
By 11.4.16
Under federal law, when brokers or other registered representatives leave a position with a banking institution, that company is required to notify the Financial Industry Regulatory Authority (FINRA) with a form that includes a field that describes why the worker was leaving. It’s those filings that lawmakers are pointing to now, claiming that Wells Fargo knew well in advance that its employees were taking part in the now infamous fake account fiasco. [More]
Wells Fargo Under Investigation For Lying To Investors About Sales Practices
By 11.3.16
The Wells Fargo fake account fiasco continues to draw the attention of regulators who, just like the bank’s executives, somehow spent years not noticing that Wells Fargo employees were opening up bogus accounts to meet strict sales goals. This morning, the bank confirmed a Security and Exchange Commission probe related to this chicanery. [More]
New Wells Fargo CEO Begins Mea Culpa Parade With Employees
By 10.26.16 — Updated: 10.31.16
Dozens of former and current Wells Fargo employees have shared their nightmarish experiences — health issues, threats of termination — involving the bank’s fake account fiasco. So aside from affected customers — who may or may not be leaving the bank — it makes sense that the new CEO of the company would apologize to workers. [More]
Report: Fake Account Fiasco Could Cost Wells Fargo $4B, Thousands Of Customers
By 10.25.16
As Wells Fargo continues to grapple with the consequences of its potentially decade-long fake account fiasco, we’re beginning to see what the future might hold for the banking giant: a large loss both financially and in its customer base. [More]
