To say that Wells Fargo has been having a bad few weeks might be an understatement: from being ordered to pay $185 million for the opening and closing of two million unauthorized consumer accounts to being party to federal investigations and being grilled on Capitol Hill. But it doesn’t look like things are going to get any easier for the company, as lawmakers are now urging a probe into whether it violated labor laws. [More]
Now that Wells Fargo has admitted bank employees opened up more than two million unauthorized accounts, it’s no surprise that customers who may have been hit with fees and charges because of these bogus accounts are firing back at the bank with a lawsuit, but they might never get their day in court. [More]
It’s been a (deservedly) bad month for Wells Fargo, what with the bank being ordered to pay $185 million in penalties because employees opened millions of bogus accounts, not to mention the ongoing Justice Department investigation. It would seem like a prime time for the competition to pile on the misery and steal away customers, but the CEO of U.S. Bank is demanding his staff not give into that temptation. [More]
Financial regulators recently ordered Wells Fargo to pay $185 million to resolve allegations that the bank’s sales quotas and incentives pushed employees to open millions of unauthorized accounts, but that my not be the end of Wells’ troubles, with the U.S. Department of Justice now looking into the matter. [More]
There’s nothing like being ordered to pay $185 million in refunds and penalties to get a big bank to change some of its business practices. After its employees allegedly created millions of bogus accounts in an effort to meet sales quotas and earn bonuses, Wells Fargo is putting an end to these controversial goals. [More]
If you live in a certain kind of urban area, you see it all the time: those new mixed-use buildings go up, and on the ground floor of practically every single one there’s a bank branch or two. And if you thought to yourself, “Why are there so freaking many bank branches opening in an era when all the young folk living in those buildings bank by phone?” you’re not alone. But it turns out there’s an easy reason that bank branches keep proliferating: customers are using ’em.
After nearly 150 years of whiz-bang multibillion-dollar Wall Street investment banking, Goldman Sachs is, for the first time, wading into the humdrum world of savings and checking accounts, by (sort of) putting its name on a consumer banking platform. [More]
While we’re used to the idea of people keeping money in places other than bank accounts — preloaded debit cards, sock drawers, comic book collections — there’s one way consumers are storing their cash that’s more popular than several financial institutions: Starbucks cards. [More]
Instead of imposing new fees on their existing customers, banks have an exciting new idea: attract new customers and charge them fees. Specifically, banks are looking to low-income and lower-middle-income people who might normally use check-cashing stores or check-cashing services in retail stores to gain immediate access to their money. These customers may not make large deposits, but what customers who want access to their cash right away do generate are lots of fees. [More]
Banks with more than $1 billion in assets now need to report on how much revenue they bring in from overdraft fees and other charges. The first report on those numbers shows that banks made $11.6 billion last year from customers who overdrew their accounts.
Back in 1998, comedian Al Franken published a satirical novel where the fictional Al Franken ran a single-issue presidential campaign against ATM fees in 2000. A technical malfunction erased ATM deposits, making his single issue a crucial one, and Franken ended up in the White House. Today, he is a sitting U.S. senator, yet not involved in the 2016 presidential race where excessively high ATM fees are an actual issue being discussed. [More]
Six months after the Los Angeles City Attorney filed a lawsuit accusing Wells Fargo of a slew of unfair practices — like encouraging employees to open unauthorized consumer accounts and then charging those accounts phony fees to meet sales expectations — two other regulatory agencies have opened investigations into the bank’s behavior. [More]
When you log into your bank account online, you might see an image of a birdhouse, or a teapot, or some other object you selected when you signed up. Those pictures are supposed to help keep a customer’s account safe, by assuring them that the web page they’re viewing is, in fact, the bank’s website and not a scammy fake. But as cybercriminals are catching on, banks are choosing to ditch the images in favor of other security measures.
Consumers’ Changing Banking Habits Led To 1,400 Bank Of America Branches Shuttering, More Cuts To Come
Over the past several years, Bank of America has revamped the way it provides banking services in an effort to cut costs and respond to consumers’ changing banking habits. Those operation modifications have not only included shutting down some drive-thru windows, but the closure of nearly a fifth of the company’s branches. [More]