Wells Fargo is currently facing — and trying to get out of — a dozen class action lawsuits involving a fake account fiasco that saw bank employees opening millions of bogus, unauthorized accounts in customers’ names. Now Wells says it has agreed to settle the oldest of those disputes, and that the settlement could close the books on the other complaints. [More]
fake account fiasco
Wells Fargo Says It Will Pay $110 Million To Settle Fake Account Fiasco Class Action
By 3.29.17 — Updated: 3.31.17
NY Fed President: Banks Must Change Culture That Led To Wells Fargo’s Fake Accounts
By 3.21.17 — Updated: 3.25.17
Giving employees incentives to do a good job can go a long way in getting results, but as we learned with Wells Fargo’s recent fake account fiasco, it can also cause serious issues: hefty fines, loss of customers, and fired executives. One top banking official says the issue needs to change this culture now, and learn to balance incentives with the interests of the customers. [More]
Wells Fargo Tries, Fails To Explain Why Customers Shouldn’t Be Allowed To Sue Over Fake Accounts
By 3.1.17
Wells Fargo has admitted that thousands of its employees opened fake, unauthorized accounts in customers’ names, but the bank is doing everything it can to prevent these wronged customers from having their day in court. We asked Wells Fargo to explain why it believes hundreds of thousands of Americans shouldn’t be allowed to exercise their constitutional right to sue. The bank’s response made little sense (unless you’re a Wells Fargo executive). [More]
Wells Fargo Won’t Pay $32M In Bonuses & Equity To Top Execs
By 3.1.17 — Updated: 5.10.17
Prior to his “retirement” as CEO of Wells Fargo, John Stumpf said he would forgo his salary and bonus for 2016 as penance for the bank’s fake account fiasco. Now, fast forward several months, and the bank’s board has decided to take away millions in extra money that was supposed to go to new CEO Tim Sloan and other top executives. [More]
Four Executives Fired Over Wells Fargo Fake Account Fiasco
By 2.21.17
The Wells Fargo fake account fiasco has already resulted in the “retirement” of the bank’s CEO, John Stumpf, and Carrie Tolstedt, Wells’ head of retail banking, for allowing employees to open millions of unauthorized accounts in customers’ names. But the bloodletting isn’t done yet, as Wells has dismissed four additional executives without the PR-friendly spin of “retirement.” [More]
Wells Fargo’s New Account Openings Down 30% After Fake Account Fiasco
By 2.17.17
Despite overhauling its teller pay system and ditching a high-pressure sales goal incentive program, Wells Fargo continues to face the consequences of its fake account fiasco perpetrated by employees who opened more than two million unauthorized accounts, as customers continue to avoid opening new accounts and credit cards with the banking biggie. [More]
Wells Fargo To Stop Giving Branches A Heads-Up Before Inspections
By 1.24.17
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]
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]
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]
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]
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]
