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Wells Fargo 23 articles

Wells Fargo Pays $575 Million To Settle Customer-Fraud Allegations

Wells Fargo will pay $575 million to resolve claims in all 50 states and the District of Columbia alleging the San Francisco-based bank violated consumer protection laws by opening millions of fake bank accounts for its customers. The bank also agreed to measures that will give its customers an extra level of protection by creating a customer restitution program, an announcement of the Dec. 28 agreement explained. Any Wells Fargo customers who haven’t been reimbursed through the restitution programs already in place at the bank can turn to a bank escalation team for relief. The settlement resolves claims that Wells Fargo ... Read More

Wells Fargo Customers Reporting Unauthorized Amazon Charges

Scores of Wells Fargo customers are reporting unauthorized Amazon Prime charges on their debit cards even when they aren’t a Prime member. So far, the fraudulent charges, which are initiated by an unknown source, appear to be clustered in the Richmond, Virginia area, according to Richmond’s WWBT NBC12. Several other cases have been reported in North Carolina and Kentucky. An Amazon spokesperson said it is aware of the fraudulent charges and says that Wells Fargo customers should take the issue up with the bank. However, if the fraudulent charges continue to appear after alerting Wells Fargo, then consumers are advised ... Read More

Wells Fargo Blames Hundreds of Home Foreclosures on Calculating Error

Wells Fargo said a software glitch in its mortgage loan modification underwriting tool led to hundreds of its customers losing their houses to foreclosure. In its latest quarterly filing with the U.S. Securities and Exchange Commission (SEC), Wells Fargo said that the calculation error caused about 625 customers to either be incorrectly denied a government-sponsored mortgage loan modification or not offered a loan modification when they would have qualified. “In approximately 400 of these instances, after the loan modification was denied or the customer was deemed ineligible to be offered a loan modification, a foreclosure was completed,” Wells Fargo said ... Read More

Wells Fargo Wasn’t the Only Bank to Open Unauthorized Customer Accounts

Wells Fargo wasn’t an outlier when it opened 3.5 million unauthorized customer accounts. Federal regulators found that dozens of other banks opened nearly 10,000 deposit and loan accounts for customers without their consent. The new banking fraud revelation came in testimony given by U.S. Comptroller of the Currency (OCC) Joseph Otting before the Senate Banking Committee June 14. Although the number of newly discovered fraudulent accounts is miniscule in comparison to the 3.5 million bogus accounts Wells Fargo bankers opened for customers, it points to the need for banks to put better safeguards in place. According to USA Today, banking ... Read More

Wells Fargo Employees Altered Customer Documents To Meet Regulatory Deadline

Wells Fargo’s business practices and controls have again fallen under criticism after it was revealed that employees in the bank’s commercial division improperly altered and added information to commercial customer accounts in a rush to meet a regulatory deadline. According to the Wall Street Journal, which broke the story, The employees in Wells Fargo’s so-called wholesale unit, which is separate from its retail bank, added or altered information without customers’ knowledge, according to the people familiar with the matter. The information added varied from social security numbers to addresses to dates of birth for people associated with business-banking clients, the ... Read More

Wells Fargo Endangered Family in Protection Program, Lawsuit Alleges

A Minnesota family in a state victim protection program is suing Wells Fargo and one of its mortgage bankers, alleging the bank has endangered them by sending mail with the mother’s name to their secret location. The plaintiffs, a mother and daughter who went into victim protection after a neighbor sexually assaulted the daughter then threatened to kill them to prevent them from testifying, claim that Wells Fargo started mailing them after the mother applied for a mortgage in 2016. They also allege that they started receiving mail from outside vendors – a sign that Wells Fargo sold their information. ... Read More

Wells Fargo Whistleblower Allegedly Fired For Reporting Foreign Exchange Violations

Wells Fargo Bank finds itself facing another whistleblower lawsuit, this time filed by the former head of the bank’s foreign exchange (FX) group who says the bank encouraged employees to “make false and misleading representations to customers, to engage in abusive sales practices, and to enrich themselves at the expense of clients.” According to The Mercury News, whistleblower Simon Fowles alleges he voiced complaints about the unlawful and unethical practices to managers at the San Francisco-based banking giant for years but that his concerns essentially fell on deaf ears. Mr. Fowles claims he warned high-level Wells Fargo executives about “significant ... Read More

Wells Fargo Pays Additional $5.4 Million For Illegally Repossessing Servicemembers’ Vehicles

Servicemembers who had their vehicles unlawfully repossessed by Wells Fargo Bank now have access to an additional $5.4 million in relief, the U.S. Department of Justice (DOJ) announced. The funds come as part of a 2016 settlement that resolved a lawsuit filed by the Justice Department against Wells Fargo, alleging the bank violated the Servicemembers Civil Relief Act (SCRA). The initial settlement provided about $4.7 million to about 410 servicemembers. The additional compensation provides an additional $5.4 million to be paid to about 450 servicemembers. The U.S. sued Wells Fargo, doing business as Wells Fargo Dealer Services, in Sept. 2016, accusing the ... Read More

Wells Fargo CEO pilloried before Senate Banking Committee

Wells Fargo chief Timothy J. Sloan fell under blistering criticism Tuesday from members of the Senate Banking Committee who attacked the banking giant’s fraudulent business practices, customer treatment, corporate culture, and Mr. Sloan’s role in the misconduct. For years, Wells Fargo’s community banking division instituted aggressive sales goals that encouraged its employees to open unauthorized deposit and credit accounts under customers’ names and then charge them for the unwanted accounts. In that scheme, Wells Fargo bankers preyed upon as many as 3.5 million Wells Fargo customers. In another more recently revealed scheme, Wells Fargo enrolled about 600,000 of its auto ... Read More

Woman Injured By Wells Fargo Door Awarded $4.5 Million

An Illinois county court jury awarded $4.5 million to a woman who sued Wells Fargo after a metal door at the bank’s location in Aurora detached and fell onto her head. Amy Skinger, 42, had to undergo surgeries on her neck and spine after being struck in the head by the metal door as she walked into the Wells Fargo mortgage retail office in May 2012. The blow knocked her to her knees and exacerbated her cervical spondylosis, a degenerative condition of the neck and spine, her lawsuit claimed. Ms. Skinger had been previously diagnosed with multiple sclerosis, an unrelated ... Read More