A class action investigation has been launched against certain banks that may have been creating fake checking accounts, in order for sales representatives to meet sales goals.

RBC Bank is one of the financial institutions under investigation for possibly opening fake checking accounts so employees could receive additional bonuses from the bank.

The fake checking accounts investigation was spurred recently when news outlets released reports of Wells Fargo’s employees engaging in this activity to qualify for additional bonuses.

Reports of this were released in 2016 and 2017, in which employees allegedly opened millions of fake checking accounts to meet the demanding sales goals set by the bank.

Wells Fargo employees reportedly created approximately 3.5 million fake credit card and checking accounts, and had also allegedly signed customers up for services they never authorized like bill pay. This caused Wells Fargo customers to face additional fees, including overdraft fees and interest charges.

Recently, Wells Fargo had agreed to pay a $142 million settlement and other fines to resolve these allegations. In addition, Wells Fargo had agreed to change its unrealistic sales goals that had allegedly pressured employees to open these fake checking accounts.

However, this discovery spurred federal regulators to investigate other banks and whether or not their business practices may pressure their employees into this misconduct.

According to a report by American Banker, the federal banking regulator Office of the Comptroller of the Currency (OCC) had conducted the investigation. The OCC had reportedly looked at over 40 large and medium-sized banks, which allegedly had opened fake checking accounts.

Overview of Fake Checking Account Allegations

RBC Bank (Royal Bank of Canada) is one of these financial institutions under investigation. RBC Bank employs approximately 79,000 employees dedicated to helping customers and has about 16 million clients worldwide.

Even though RBC Bank has millions of customers, they should be wary of any signs of fake checking accounts that may have been opened their name. Signs of fake checking accounts include, but are not limited to:

• Overdraft Fees: Customers may find that money may have been taken out of their existing account to open a new unauthorized account, which can sometimes cause overdraft fees for customers.
• Unusual Bank Fees: Customers have complained that they were signed up for a different type of bank account than what they agreed to, which often includes expensive fees. For example, one customer stated she noticed she was charged $29.95 and discovered that her account had been upgraded without her knowledge. The new account reportedly required her to have a $5,000 minimum in her account, or she would be charged a feed the fee.
• Interest Charges: Customers may face additional interest charges, due to a credit card being opened in their name.
• Unusual Credit Report Changes: A credit report will show if someone had tried open a credit card in the consumer’s name.

In addition to these signs, consumers can also call their bank and ask for a review of all the accounts in their name. Consumers who may have had fake checking accounts opened at RBC Bank or other financial institutions, may be able to file legal action for compensation.