It Appears Wells Fargo’s Alleged Fraud Wasn’t Limited To California
“The allegations against Wells Fargo could damage the bank’s reputation and probably already are being looked into by regulators” -G. Michael Moebs, Moebs Services Inc.
As word spread of the lawsuit filed by Los Angeles City Attorney Mike Feuer alleging Wells Fargo victimized its California customers with illegal bank tactics such as having accounts opened in their names without their permission so employees can reach sales quotas, Wells Fargo customers from Florida to Montana have come forward alleging that they had also been victimized by Wells Fargo’s sleazy practices and that their credit scores have taken a hit because of it.
According to the LA Times, it appears the Office of the Comptroller of the Currency, the federal government agency that regulates federally chartered banks and the Consumer Financial Protection Bureau created by Congress under the Dodd-Frank Act, may be launching separate investigations against Wells Fargo based on the claims in the lawsuit.
The city’s lawsuit alleged that the root of the problem was an unrealistic sales quota system enforced by constant monitoring of each employee — four times a day.
Feuer claims in the suit that was filed in Los Angeles Superior Court that, “In order to achieve its goal of selling a high number of ‘solutions’ to each customer, Wells Fargo imposes unrealistic sales quotas on its [California] employees, and has adopted policies that have, predictably and naturally, driven its bankers to engage in fraudulent behavior to meet those unreachable goals,”
The LA Times reports, “Employees described how staffers, fearing disciplinary action from managers, begged friends and family members to open ghost accounts. The employees said they also opened accounts they knew customers didn’t want, forged signatures on account paperwork and falsified phone numbers of angry customers so they couldn’t be reached for customer satisfaction surveys.”
Feuer told the LA Times, “Wells Fargo clients should call his office immediately at (213) 978-3393 if they notice checking or savings accounts have been opened in their names at the bank without their permission.”
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