Wells Fargo May Face Further Legal Action for Fake Accounts
Last week, federal regulators fined Wells Fargo $185 million for opening fake accounts under existing customer names. On Friday, attorneys at Girard Gibbs announced they are investigating a potential lawsuit against the bank.
Regulators said Wells Fargo may have opened as many as 1.5 million checking and savings accounts as well as more than 500,000 credit card accounts without their customers’ knowledge or consent. Girard Gibbs asserts that customers may have experienced adverse affects to their credit ratings due to these unlawful actions, which could have led to higher loan charges and fees.
The CFPB asserted that Wells Fargo employees opened these accounts due to the bank imposing unrealistic sales quotas. Regulators also assert Wells Fargo failed to monitor employee actions.
The National Association of Federal Credit Unions (NAFCU) has also weighed in on the CFPB’s action. The NAFCU’s President and CEO Dan Berger said, “Wells Fargo’s illegal sales practices are an egregious violation of consumer trust. To open more than 1.5 million likely unauthorized consumer deposit accounts and more than 500,000 credit card accounts is despicable, and it’s flat-out fraud. Someone needs to go to prison. To put an end to this type of behavior, there has to be personal accountability. Consumers deserve better; our country deserves better. Did the banks not learn anything from the financial crisis they caused?”