Consumers who discover their personal information has been used to open unauthorized accounts could be eligible to file a fake accounts lawsuit.

In 2016, Wells Fargo employees engaged in fierce sales competition that spurred them to open fake accounts in customers’ names without their permission or their knowledge.

After Wells Fargo agreed to a $142 million settlement over unauthorized account creations, some financial institutions began to make efforts to ensure a customer actually authorized a new account. Still, it’s nearly impossible to verify every bank account, savings account or credit card that every employee creates. Sometimes this can lead to a fake accounts lawsuit. 

The Office of the Comptroller of the Currency (OCC) looked into the practices of more than 40 other banks to see if other financial institutions exposed themselves to the risks of a fake accounts lawsuit. An article in American Banker said the OCC discovered other banks had employees open new accounts without proof of a customer’s consent.

Although the OCC has not named any banks, attorneys are investigating whether a fake accounts lawsuit could be warranted based on practices at any of the following banks:

• Bank of America
• BOK Financial
• Capital One
• HSBC
• Royal Bank of Canada
• TD Bank

Wells Fargo employees were responsible for the creation of 3.5 million fake credit card and bank accounts, all because they wanted to win sales contests. Little or no attention was paid to the fact that the customers could be left with unexpected overdraft fees and interest charges as a result of the deceptive actions by the employees.

Fake Accounts Lawsuit Reasons

The OCC determined several reasons why employee behavior would lead to reasons for customers to file a fake accounts lawsuit.

When Wells Fargo fired 5,300 employees for opening fake accounts, the company was faulted for demanding unrealistic sales goals. Wells Fargo managers allegedly pressured the employees to create new accounts for customers when the customers didn’t express interest in another account.

Wells Fargo employees used all of a customer’s information with the exception of the customer’s email address. The email was changed to something such as [email protected], alleged one fake accounts lawsuit. The email presumably was changed to prevent the customer from receiving notification that a new account was created in their name.

Former employees at other banks have indicated their previous employers also were relentless in pursuing new sales even if it meant convincing current customers to open more accounts.

One OCC spokesman told American Banker that problems at financial institutions include “short-term sales promotions without adequate risk controls, deficient account opening and closing procedures, and isolate instances of employee misconduct.”

HSBC is one of the banks currently under investigation. According to the company’s website, HSBC now has more than 38 million customers in 66 countries and territories. HSBC’s financial advisory services, full-service insurance company, and full-service brokerage services operate out of New York City, New York. HSBC also has private banking services in the U.S., headquartered in Miami, Florida.