In the past few years it has been reported that Wells Fargo employees opened up fake bank accounts in the names of customers in order to meet sales goals. It is now thought that other banking institutions may have done the same thing.

In 2016 and 2017, Wells Fargo made the news because it was revealed that employees would open up a fake bank account in customers’ names in order to meet individual sales targets.

In fact, during this fake bank account scandal, it was found that employees at Wells Fargo created fake credit card accounts and bank accounts totaling $3.5 million. The employees reported that they opened fake accounts to make their sales numbers seem higher and accrue extra bonuses for hitting their sales targets.

It was also discovered in this fake bank account scandal that some Wells Fargo employees signed customers up for other bank services that the did not know about, including online bill pay. Customers of Wells Fargo suffered in this fake bank account scandal, often racking up overdraft fees and interest charges.

CNN Money reported that about 190,000 accounts were charged unnecessary fees in the Wells Fargo fake bank account scandal. Additionally, over 500,000 customers were allegedly enrolled in online bill pay without their consent.

A $142 million settlement was reached and Wells Fargo also agreed to pay other fines. Additionally, as a result of this fake bank account scandal, Wells Fargo said it would change its system of setting unrealistic sales goals for its employees that may have encouraged employees to create fake bank accounts for customers.

According to CNN Money, “Wells Fargo is trying to make things right by scrapping its sales goals, installing new management and paying out millions in refunds.” This includes $6.1 million to compensate customers for unauthorized fake bank account and and almost $1 million to rectify the improper bill pay enrollments in this fake bank account scandal.

Other Banks That May Have a Fake Bank Account Scandal

There are other banks that are now being investigated regarding the creation of fake bank accounts.

According to federal regulators, fake bank account practices may involve other banks beside Wells Fargo.

Following the fake bank account scandal with Wells Fargo, the Office of the Comptroller of the Currency opened an investigation into fake bank account practices at other banks. It looked at 40 banks, both large and midsized, and found evidence of the creation of fake bank accounts. The reasons varied from short term sales goals, employee misconduct, and account opening and closing procedures that were deficient.

The regulators declined to name the banks in which they found questionable sales practices. Meanwhile, a fake bank account class action investigation is looking into sales practices at TD Bank, Bank of America, Capital One, HSBC, BOK Financial and Royal Bank of Canada.

Whether or not a customer has a bank account with Wells Fargo or another bank, they should be vigilant in checking their accounts to make sure they have given consent regarding their personal banking activities.

If you believe that you have fallen victim to a fake bank account creation or unfair fees because of enrollment in a bank program without your consent, you may qualify for monetary compensation.