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Wells Fargo Fined $185 Million in Fraud Case

Super Contributor

Wells Fargo Fined $185 Million in Fraud Case

Wells Fargo hit with $185 million fine from the CFPB for opening unauthorized customer accounts. The largest ever! And fires 5,300 employees over the past few years related to the shady behaviour. I have a hard time believing that this wasn't a culture that WF encouraged. That's an awful lot of employees involved for the bigwigs not to know what was going on. Sounds like they are being made the scapegoats. SO, glad I left WF and went to CUs.

https://www.google.com/amp/journalstar.com/news/national/wells-fargo-fires-workers-fined-million-in-...

 

http://money.cnn.com/2016/09/08/investing/wells-fargo-created-phony-accounts-bank-fees/index.html

Message 1 of 44
43 REPLIES
Moderator

Re: Wells Fargo Fined $185 Million and Fires 5,300 Employees in Fraud Case

Crazy, and I wonder how so many of my CCs get compromised, inside job most of the time.... The breakdown of the fine is 100M to the CFPB, 35M to the comptroller of the currency and 50M to the City/County of Los Angeles CA.

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

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Message 2 of 44
Super Contributor

Re: Wells Fargo Fined $185 Million and Fires 5,300 Employees in Fraud Case


gdale6 wrote:
Crazy, and I wonder how so many of my CCs get compromised, inside job most of the time.... The breakdown of the fine is 100M to the CFPB, 35M to the comptroller of the currency and 50M to the City/County of Los Angeles CA.

I totally agree. Alot of inside theft going on. SMH. Just found out my good friend had an unauthorized savings account opened by a WF employee last year. Crazy!!

Message 3 of 44
Super Contributor

Re: Wells Fargo Fined $185 Million and Fires 5,300 Employees in Fraud Case

Simply incredible Smiley Surprised

 

The phony accounts earned the bank unwarranted fees and allowed Wells Fargo employees to boost their sales figures and make more money.

"Wells Fargo employees secretly opened unauthorized accounts to hit sales targets and receive bonuses," Richard Cordray, director of the Consumer Financial Protection Bureau, said in a statement.

Message 4 of 44
Super Contributor

Re: Wells Fargo Fined $185 Million and Fires 5,300 Employees in Fraud Case

Isn't that just bananas Magic?? Like WOW!
Message 5 of 44
New Member

Re: Wells Fargo Fined $185 Million and Fires 5,300 Employees in Fraud Case

My credit card account with them was opened without my permission in 2014. I was in the drive-thru and a male employee comes and says "You're eligible for a special offer, would you like some information?" I said yes, but I never got that information. A few days later I went into my Wells Fargo account just to check the message center there (I have a checking account with them, but moved all of my money from WF to Chase due to some issues) and lo and behold, I see a credit card account. I immediately called WF and they told me to speak with the supervisor in the branch. When I went into the branch, the supervisor wasn't even concerned, he just told me that I could cancel the card once I receive it, but the inquiry is already in my credit report and I might as well use it while I have the benefits (5% CB for 6 months), as well as I could write a letter to the credit bureaus, but it would take a long time before I would see results, if there would be any. I never pursued it because I had just graduated college and was more focused on making my transition into the real world.

 

I always felt like I should have pursued it, but I just left it alone and kept the card because its only benefit is  that it provides insurance for my cell phone since that is what I use to pay for my bill. Also, I started out with them while it was Wachovia in 2009 (and I miss Wachovia so much lol) when I was starting my freshman year in college. When they transitioned to Wells Fargo, that's when my problems started. I had a few discrepancies, but I did not pay that much attention to my account, I just kept spending, but left enough cushion so as to not overdraft, or at least I thought I did. It was so long ago, I don't even remember if I was just careless with my spending or I just wasn't paying attention to my account transactions, but I do remember having an uneasy and confused feeling majority of time I would receive a letter in the mail from them about my account over drafting, hence my move to Chase in like 2013 (best decision so far).

 

All in all, I kind of hope they scammed me so I can get some money back lol ... 2 years after graduation and being the real world, I'll take anything I can get lol. The only good thing I got from WF was learning to monitor my account and transactions closely

Message 6 of 44
Super Contributor

Re: Wells Fargo Fined $185 Million and Fires 5,300 Employees in Fraud Case

a-dub that is just terrible!! I hope that every victim is compensated!! What a shady practice! Smiley Mad
Message 7 of 44
Moderator

Re: Wells Fargo Fined $185 Million and Fires 5,300 Employees in Fraud Case

Like all of these kinds of cases sadly the people that were harmed will see little to know compensation while various lawyers get rich.  Not much different than most class action settlements. Additionally while WF has fired 5,300 employees as a result of this, those at the top who were most responsible for the business conditions that led to this happening, will go unpunished.

Message 8 of 44
Super Contributor

Re: Wells Fargo Fined $185 Million and Fires 5,300 Employees in Fraud Case

It's worth noting that the 5300 employees were fired over the course of the last few years.  In reading the headline one may believe that this total happened all at once very recently when that is not the case.

Message 9 of 44
Super Contributor

Re: Wells Fargo Fined $185 Million and Fires 5,300 Employees in Fraud Case


BrutalBodyShots wrote:

It's worth noting that the 5300 employees were fired over the course of the last few years.  In reading the headline one may believe that this total happened all at once very recently when that is not the case.


Edit made.

Message 10 of 44