Wells Fargo Scam

Wells Fargo has reached a $110 million preliminary settlement to compensate all customers who claim the scandalous bank that opened fake accounts and other products in their name. In September of 2017, the bank opened up to 2 million fake accounts to meet unrealistic sales targets that have since been eliminated. These accounts were created in order to generate profit and meet the sales margin.

Wells Fargo said that the payments to customers will be in addition to refunds the bank has already paid out. The settlement is expected to cover several lawsuits: One in May of 2015, a separate one launched in September 2017 by customers, and over 10 others as well. This settlement marks a reversal from when it tried to kill a fake account lawsuit by forcing victims to resolve their claims quietly in closed-door settings rather than in an open court.

In a CNN Report, Brian Kennedy, a retiree from Maryland who was one of the first to discover that Wells Fargo had opened a new checking account that he never asked for. He says, "It really pissed me off. […] They expect people to not be paying attention and hope that you don't notice."

Despite this new settlement, Wells Fargo does not seem like it is moving away from its practice of enforcing the fine print agreements that require customers to enter arbitration when issues arise. This has been criticized because it allows companies to hide misbehavior in private ways, rather than opening it up to the public. "They continue to believe that arbitration is an efficient and effective way to resolve dispute," a Wells Fargo spokesperson said.


https://money.cnn.com/2017/03/29/investing/wells-fargo-settles-fake-account-lawsuit-110-million/index.html