5,300 Wells Fargo Employees Fired for Creating Millions of Phony Accounts

[Locutus]

NEW YORK (CNN) — Everyone hates paying bank fees. But imagine paying fees on a ghost account you didn’t even sign up for.
That’s exactly what happened to Wells Fargo customers nationwide.

On Thursday, federal regulators said Wells Fargo employees secretly created millions of unauthorized bank and credit card accounts — without their customers knowing it — since 2011.

The phony accounts earned the bank unwarranted fees and allowed Wells Fargo employees to boost their sales figures and make more money.

“Wells Fargo employees secretly opened unauthorized accounts to hit sales targets and receive bonuses,” Richard Cordray, director of the Consumer Financial Protection Bureau, said in a statement.

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5,300 Wells Fargo Employees Fired for Creating Millions of Phony Accounts | FOX40

 

[tay]

Wells Fargo and Co said it would reimburse about $80 million to 570,000 customers who may have been charged wrongly due to issues related to auto collateral protection insurance (CPI) policies.

Wells Fargo has been engulfed in scandal since September, when it reached a $190 million settlement with regulators over complaints that its retail banking staff had opened as many as 2.1 million unauthorized client accounts.

The bank had fired 5,300 employees for improper sales tactics over five years, but did not make much changes to policies and procedures, or hold managers accountable until there was a public outcry.

Wells Fargo said late Thursday it would pay back $80 million to customers wrongly charged for car loan insurance in the coming months, which included $64 million in cash and $16 million of account adjustments.

"We take full responsibility for our failure to appropriately manage the CPI program and are extremely sorry for any harm this caused our customers," said Franklin Codel, head of Wells Fargo Consumer Lending.

The bank said it had started a review of the CPI program in July 2016 and discontinued the program in September, based on the findings.

New York Times reported earlier that more than 800,000 people who took car loans from Wells Fargo were charged for auto insurance they did not need, and some of the customers were still paying for it.

About 490,000 customers had duplicate vehicle insurance coverage and about 60,000 customers did not receive complete disclosures from vendors, prior to CPI coverage, Wells Fargo said.

For about 20,000 customers, additional costs of the CPI could have led to defaults resulting in seizure of their vehicles. The bank said these customers would receive additional payments as compensation for the loss of their vehicles.

Wells Fargo to refund $80 million to customers hit by car loan insurance | Reuters

 

[Walter]

Stoopid accountable corporation. Wish gubmint was this accountable

 

[B00Mer]

SEPTEMBER 8, 2016 Slow new day to nacro this..

 

[Bar Sinister]

Stoopid accountable corporation. Wish gubmint was this accountable

It is. We can vote governments out of office. Just ask Stephen Harper. Corporations stay on to cheat us again.

 

[Dixie Cup]

Fortunately they're not in Canada anymore!