Wells Fargo Charged Customers for Unauthorized Bank and Credit Card Accounts

By on September 8, 2016

According to federal regulator Consumer Financial Protection Bureau, Wells Fargo opened 1.5 million unauthorized accounts since 2011 in the name of existing customers in order to artificially boost the number of its accounts to impress Wall Street.

“Wells Fargo employees secretly opened unauthorized accounts to hit sales targets and receive bonuses,” Richard Cordray, director of the CFPB.

The scheme was usually perpetrated by Wells Fargo employees opening an unauthorized account for an existing customer and transferring money into the new account from the old ones.

In addition to bank accounts, Wells Fargo submitted applications for 565,443 credit card accounts without the knowledge or consent of the supposed applicants.

Wells Fargo was ordered to pay $185 in fines and restitution to customers.