Wells Fargo

[Pop_Rivit]

Wells Fargo Fined

Creating phony accounts? Moving money from one account to another without customers knowledge? Opening 2 million deposit and credit card accounts without customers knowledge? More than 5,000 employees involved?

 

[Mr Nice]

Quote:
Wells Fargo built an incentive-compensation program that made it possible for its employees to pursue underhanded sales practices, and it appears that the bank did not monitor the program carefully," said CFPB Director Richard Cordray. He added that thousands of bank employees "misused consumer names and personal information to create new checking and credit card accounts to inflate their sales figures to meet their sales targets and claim higher bonuses.


Not surprised employees did this. I knew a woman working as a teller for Washington Mutual about 20 years ago. Her pay increased depending on how many new checking accounts and WaMu credit cards she was able to 'persuade' customers to open. Like a retail cashier asking if you want their store credit card...

When you have incentive based pay and sales targets to meet... eventually there will be some dishonest employees using fraudulent means to get more money from their employer.

 

[RazorsEdge]

I read this earlier today,not good.

I've been with Wells Fargo for years,but before this summer ends,we'll be switching banks,most likely going to a credit union.

 

[CourierDriver]

thou shalt not steal,,,,read that somewhere,,,,hmmm

 

[Oldtom]

Nothing new. I worked for First USA Bank from 1997 to 2000. FUSA had a bad customer attrition problem due to horrible customer service. FUSA reactivated thousands of closed accounts WITHOUT customer approval and mailed convenience checks to the old address. There was massive fraud as the convenience checks went to outdated addresses. Imagine finding out your credit is trashed because a check you never requested, drawn on on an account you closed was mailed to your old address?

To add insult to injury, FUSA never wrote off the losses as required by law. I was forced out because I signed a petition to stop illegally shredding fraud affidavits. FUSA was connected because no one ever went to jail. Now, I work in manufacturing and will never never work in banking again Sometimes, being blacklisted in an industry is a good thing.

 

[MNgopher]

Went through this at one time with Wells Fargo. Essentially had an account created in order to access some benefit. Learned later that was not necessary and was done only to boost sales numbers.

After they bungled several things related to a loan refinancing, paid nothing in interest on anything interest bearing, and made it a game to come up with new fees that were a maze to keep track of to not be hit with them, we've cut our relationship back to next to nothing - one checking account and our mortgage.

Moved everything else to a Credit Union and don't miss WF one bit...

 

[Ohle_Manezzini]

Financial system is (was) based on trust and compliance?

 

[Kawiguy454]

Get used to it ...Metrics driven digital data mining does not mix well with vacuum tube analog human beings. The slippery carbon units will come up with infinite strategic variations to game the digital controls placed upon them.

Stealing? is it stealing when you stole it from a thief? ...That stole it from you. I don't steal in any case ...Just sayin it sounds like an oil thread.

 

[Kruse]

Originally Posted By: Pop_Rivit
Wells Fargo Fined

Creating phony accounts? Moving money from one account to another without customers knowledge? Opening 2 million deposit and credit card accounts without customers knowledge? More than 5,000 employees involved?



Just another bank that's "too big to fail". Watch this incident get political and somebody will try to win votes over it.

 

[edwardh1]

where are the bank officials in this?

 

[Yah-Tah-Hey]

I wouldn't expect too many bank official to wind up in a federal penitentiary over this. WF will get the best attorneys available and the whole incident will be swept under the carpet just like to 08 financial crisis.

 

[Donald]

Stick to Credit Unions or small time local banks.

 

[tom slick]

Wells Fargo contributes to political activism. Among other activities they are cancelling commercial accounts of businesses that don't fit a certain political agenda. A local, well established business had their business accounts cancelled because they make pocket knives.

 

[volk06]

This is exactly why I bank at two local credit unions.

 

[ArrestMeRedZ]

Originally Posted By: edwardh1
where are the bank officials in this?


They set it up so employees were either forced to do this, quit, or be dismissed. Five years ago, my niece was in management training with them, and even though her duties reduced contact with customers, she had the same quotas as the tellers. She was informed the other employees did this on a routine basis. She refused, and left before she was fired for not meeting her quotas.

I suspect the officials were aware of the practice.

 

[SteveSRT8]

Classic churning of accounts. Happens in many different settings.

A failure of management. If you structure the rules so that your employees must be dishonest to succeed you are simply a bad manager...