CFPB Accuses Wells Fargo of Closing Valid Customer Accounts
Wells Fargo isn’t just in trouble for opening fake accounts. Now they’re under fire for closing real ones.
According to a report from Reuters, the Consumer Financial Protection Bureau is currently investigating several complaints from Wells Fargo customers whose accounts were frozen or closed unexpectedly. The reasons for the account closings varied from supposed identity theft to fraudulent deposits, but ultimately consumers were blocked from funds they needed.
One complaint said the customer moved money from a savings account to a checking account shortly before the mother passed away. The checking account was locked by the fraud department, and it has remained that way for three months. “Now her debts are delinquent and mortgage about to go into foreclosure.”
Another complaint was from someone with over 23 years of history with Wells Fargo. The bank closed the account “after reviewing their relationship,” forcing the customer to cease all automatic payments, deposits, and other account activity.
Most of the CFPB complaints focus on financial hardships consumers faced after their accounts were closed or frozen. One customer said Wells Fargo did not return $500 that was left in their account for two weeks after freezing it.
The CFPB has not assigned a fine amount for the damages, but they are examining the complaints on behalf of the consumers.
About John H. Oldshue
John Oldshue is the creator of LowCards.com. He worked for over 15 years in television and won an Emmy award for his reporting. He covers credit card rate issues for LowCards.com.