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Wells Fargo finds an additional 1.4 million potentially fake accounts

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Wells Fargo finds an additional 1.4 million potentially fake accounts

Old 09-02-2017, 12:24 PM
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Default Wells Fargo finds an additional 1.4 million potentially fake accounts

Wells Fargo on Thursday said it had potentially opened an additional 1.4 million sham accounts customers didn’t want, 67 percent more than it initially estimated, escalating an already contentious battle over the future of the mega bank.

The bank revised the total, now up to 3.5 million, after discovering that employees may have been opening unauthorized credit card and bank accounts for customers for far longer than originally acknowledged. The eye-popping figure will likely hamper the bank’s efforts to move beyond the nearly year-long scandal as lawmakers and regulators delve deeper into its inner workings and demand changes.........

The latest review also does not address other scandals that have beset the firm recently, including that 570,000 of its auto loan customers were charged for insurance they didn’t need, driving some to default and have their cars repossessed........


Regulators have already fined the bank $185 million after it acknowledged that employees had opened unauthorized accounts for customers to meet aggressive sales goals and qualify for bonuses. Wells Fargo fired 5,000 employees over several years for the practice. It declined to comment on whether more employees were fired for the practice during the additional years reviewed...........


https://www.washingtonpost.com/news/...=.b2335dcdaa9a


What a mess
Old 09-02-2017, 12:45 PM
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How many shoes are going to drop?

Wells Fargo stock is well off its 52 week high, but I'm surprised it hasn't been hammered even worse. Analysts still like it in spite of the parade of scandals.
Old 09-02-2017, 01:16 PM
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I'm surprised this took so long to become public and would not be surprised if there were even more fraudulent accounts.

If thousands of employees were fired for doing the wrong thing than you have to place the blame at the management team that put the incentive structure in place and turned a blind eye over establishing the internal controls necessary to police the plan. The employees were just the scapegoats. Claw back management.
Old 09-02-2017, 01:26 PM
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Maybe I'll be the beneficiary of another class action lawsuit. The last one (for collusion with a title company) paid nicely.
Old 09-02-2017, 02:17 PM
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Originally Posted by yarcraft91 View Post
How many shoes are going to drop?

Wells Fargo stock is well off its 52 week high, but I'm surprised it hasn't been hammered even worse. Analysts still like it in spite of the parade of scandals.
This bank should be shut down. Laws need to be enforced.
Old 09-02-2017, 02:25 PM
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This bank is a POS. Anyone who uses them is dumb.
Old 09-02-2017, 02:29 PM
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Originally Posted by schoolsout1 View Post
This bank should be shut down. Laws need to be enforced.
There would be zero banks left. Wells is a good institution overall but there was definatley a culture that led to unethical sales practices and should have been caught internally without question long ago. Every bank to some degree encounters this at some point. The senior leadership at the divisional level for affected business lines ultimately should be held accountable IMO at Wells.
Old 09-02-2017, 02:31 PM
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Here's my take on banks.

Mind you, I have stock in Bank of America and Citi.

Banks are not needed. All that are needed at ATMs and a phone center. Then people with cars to come to you. I have a strict rule. If you have to walk into a bank to talk to a human, you have done something wrong. Each time I have to deal with a teller (VERY rare!) it is torture.

During the holidays I need $1 coins. If you saw the faces on the ding-bat teller when I tell her I need $200 in $1 coin. I'm not kidding. "What are those?" "Why do you need them?" "We done have those." "We have quarters" "Are these them?"

Or my favorite. If a check has a name spelled wrong? They won't deposit it. So I take a picture with my phone and it is done.

yourbank.com or app. Humans at banks suck.

Wells Fargo REALLY screwed the pooch on the account mess...

Last edited by THT Mod 11; 09-04-2017 at 05:43 AM. Reason: removed offensive comment
Old 09-02-2017, 02:39 PM
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My sister in law works for nationsbank and they had quotas they had to meet at one point for savings and checking accounts. I don't know if they haven't recently changed this, but at one time they heavily pressured the employees to meet these goals. The branch she worked for the most part dealt with the same local customers repeatedly so there were few opportunities to open new accounts. I can see how this could be a problem for several banks.
Old 09-02-2017, 03:05 PM
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I think I've said it before, but I had to go to a Wells Fargo to deposit some cash in a relative's account a year or two ago.

There were maybe 4 people in line, and I was standing there for 10 minutes listening to EVERY customer get the hard sell on new accounts, credit cards, etc. When I got there to deposit my cash, and I got the "Well wouldn't YOU like to be a WF customer tooooooo?" I went berzerk on them and explained in no uncertain terms that after watching the shenanigans they pulled in that short time I was there, there was no way I'd ever be one of their customers. Seems like WF deserves everything they're getting for bad press.

There are still some professional banks out there.
Old 09-02-2017, 03:09 PM
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Originally Posted by PSW View Post
There would be zero banks left. Wells is a good institution overall but there was definatley a culture that led to unethical sales practices and should have been caught internally without question long ago. Every bank to some degree encounters this at some point. The senior leadership at the divisional level for affected business lines ultimately should be held accountable IMO at Wells.
Most banks, as they stand now, need to be taken out...this type of behavior (and the other shenanigans) needs to be eradicated.
Old 09-02-2017, 03:58 PM
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Originally Posted by Flot View Post
I think I've said it before, but I had to go to a Wells Fargo to deposit some cash in a relative's account a year or two ago.

There were maybe 4 people in line, and I was standing there for 10 minutes listening to EVERY customer get the hard sell on new accounts, credit cards, etc. When I got there to deposit my cash, and I got the "Well wouldn't YOU like to be a WF customer tooooooo?" I went berzerk on them and explained in no uncertain terms that after watching the shenanigans they pulled in that short time I was there, there was no way I'd ever be one of their customers. Seems like WF deserves everything they're getting for bad press.

There are still some professional banks out there.
That's nothing. There is NOTHING like being asked, "Why do you need xxxx?" when at a bank.

Why? Because I'm going to roll around naked in it. WTF business is it of yours?
Old 09-02-2017, 04:00 PM
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Originally Posted by PSW View Post
There would be zero banks left. Wells is a good institution overall but there was definatley a culture that led to unethical sales practices and should have been caught internally without question long ago. Every bank to some degree encounters this at some point. The senior leadership at the divisional level for affected business lines ultimately should be held accountable IMO at Wells.
Wrong, there the biggest scumbags in the industry. 2 MILLION fake accounts - it's in their culture. Others banks had nothing like this number.
Old 09-02-2017, 04:02 PM
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One of the banks I trust..


.
Old 09-02-2017, 04:17 PM
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This happened to my wife. They opened a savings account under her business name, she never asked for or wanted them to do it.

THEN they started automatically transferring small amounts of money out of her business checking account into the savings account. They were pretty dumb about this because it was her petty cash operating account - no major amount of money, usually less than 1K/mo went through this account. This makes me think they targeted low dollar accounts for this - i.e. people who didn't have the means to fight it.

THEN (and this is what made her go ape shit) they started charging her minimum balance fees on the savings account she never opened because she never deposited more than the meager (like $5 a month) amounts they were automatically transferring.

At one point she had an account she never opened with a negative balance in it because the fees were more than the auto transfer amounts.

She lit them up and pulled all her accounts and went to another bank. If memory serves me this was about 4 years ago.

I would never bank at Wells Fargo. EVER.
Old 09-03-2017, 09:23 AM
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Originally Posted by SEATOAD View Post
This happened to my wife. They opened a savings account under her business name, she never asked for or wanted them to do it.

THEN they started automatically transferring small amounts of money out of her business checking account into the savings account. They were pretty dumb about this because it was her petty cash operating account - no major amount of money, usually less than 1K/mo went through this account. This makes me think they targeted low dollar accounts for this - i.e. people who didn't have the means to fight it.

THEN (and this is what made her go ape shit) they started charging her minimum balance fees on the savings account she never opened because she never deposited more than the meager (like $5 a month) amounts they were automatically transferring.

At one point she had an account she never opened with a negative balance in it because the fees were more than the auto transfer amounts.

She lit them up and pulled all her accounts and went to another bank. If memory serves me this was about 4 years ago.

I would never bank at Wells Fargo. EVER.

Wait.

Not only did the open an account for her that she didn't want... then they started moving money around?

If that happened to me, the first person on the phone would be The Office of Comptroller of the Currency. Trust me when I tell you. If you ***EVER*** have a problem with a National Bank (can't be a local BS bank)... you call that office. You will generally get a call back from a high-level executive of the bank within an hour.

Nobody, and I mean NOBODY in the banking business screws with them. They run the entire show.
Old 09-03-2017, 01:47 PM
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Originally Posted by OldPete View Post
Wait.

Not only did the open an account for her that she didn't want... then they started moving money around?

If that happened to me, the first person on the phone would be The Office of Comptroller of the Currency. Trust me when I tell you. If you ***EVER*** have a problem with a National Bank (can't be a local BS bank)... you call that office. You will generally get a call back from a high-level executive of the bank within an hour.

Nobody, and I mean NOBODY in the banking business screws with them. They run the entire show.
The banks run the show...don't kid yourself
Old 09-03-2017, 03:32 PM
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This needs to be addressed by FDIC and Congress. Considering the amount of money they spend on lobbyists and congressional members PACs, I wouldn't hold my breath waiting for action.

This is exactly why we need to get the big money out of politics.
Old 09-03-2017, 03:36 PM
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Originally Posted by schoolsout1 View Post
The banks run the show...don't kid yourself
So, what, the call from the high-level bank executive is to tell you "Don't you dare ever call the Comptroller of the Currency again!"?

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