If you’re a Wells Fargo customer, you might want to check your account.
In the last few years, close to 5,300 of the bank’s employees were involved in the creation of more than 2 million duplicate accounts against their customers’ will. They accomplished this by taking customer information and creating unauthorized bank accounts and credit cards no one asked for, all while charging fees for said accounts.
While no one in the company is owning up to a grand scheme to defraud their clients, bankers and managers of the San Francisco-based bank were continuously pressured to sell between 15 and 20 products per customer by Carrie Tolstedt, the former head of Wells Fargo’s consumer-facing division.
After this fraudulent activity came to light, Wells Fargo fired all 5,300+ employees involved in the scam, and the company’s stock lost nearly $4 per share since the beginning of this month. And what became of Tolstedt, the person who oversaw these dishonest bank managers?
She retired from the company and took a $124.5 million bonus with her.
If you’re a Wells Fargo customer, there’s a chance someone at your branch opened a duplicate account in your name…and charged you hidden fees for it.
Around two millions accounts and credit cards were created by bank managers and bankers, all to meet an imposed quota by Wells Fargo higher-ups like Carrie Tolstedt.
Wells Fargo CEO John Stumpf, however, blames the fake account creation on the bank culture, deflecting blame from Tolstedt and others like her.
Would you trust this face?
Obviously, the creation of these accounts were illegal, and Wells Fargo now has to pay a whopping $185 million fine to the Consumer Financial Protection Bureau for their dishonest practices.
The bank also started paying back customers for any fees they were charged in the process, but they still have a long way to go.
Meanwhile, Carrie Tolstedt still gets to keep her $124.6 million bonus, even though her awful quotas were responsible for this in the first place.
Earlier today, Wells Fargo agreed to stop setting sales quotas for their bank branches. If they did this to begin with, then they wouldn’t be paying out massive fines and refunding their customers after stealing from them. Even though they’re trying to make nice now, it’s hard for consumers and investors alike to put their trust in such an untrustworthy bank.
Share this story with your friends who bank at Wells Fargo, and help them get out while they still can.