A class action investigation has been launched against Bank of America and several other financial institutions following news that many major banks other than Wells Fargo may have a fake accounts problem on their hands.

The Wells Fargo fake accounts scandal spurred the federal government, through the Office of the Comptroller of the Currency (OCC), to conduct investigations against other big banks like Bank of America, to determine if their employees engaged in similar deceptive behavior to reach sales goals.

According to the Wells Fargo fake sales account scandal, sales associates had opened these fake accounts to meet high-pressure sales goals at the expense of their customers. The Wells Fargo fake accounts scandal was made public in 2016 and 2017, with the bank reaching a $142 million settlement to resolve the numerous false advertising and other related damages. Wells Fargo also agreed to change their sales policies and change their unreasonable sales goals, which allegedly caused employees to open the fake accounts to begin with.

It is important to note that the OCC still hasn’t revealed which banks were found to have unauthorized accounts. Consumer advocates are now investigating to find out whether Bank of America and other big banks may have been practicing similar sales methods.

Overview of Fake Account Allegations

After the Wells Fargo fake bank account scandal, the OCC conducted a widespread investigation of over 40 banks’ sales practices and reportedly found several system problems in many major banks.

More specifically, the review found five systemic problems that the banks needed to fix, along with 250 specific problems at individual banks. While the OCC has yet to make their results public, the review reportedly found instances of bank accounts whose origins the banks did not have adequate documentation of.

The review had also found that, in most cases of allegedly fake accounts, the banks had done this due to the pressure of short term sale promotions without sufficient risk controls, insufficient account opening and closing procedures, and instances of employee misconduct.

“When unauthorized account opening or other inappropriate sales practices occurred, banks have already taken — or are in process of taking — remedial action,” an OCC spokesman told American Banker.

Bank of America customers and those at other banks should be wary of any signs of beings signed up for fake accounts or other unauthorized activity including:

• Overdraft Fees: Bank employees could be taking money out of customers’ existing accounts to open the unauthorized bank accounts, resulting in overdraft fees for some Wells Fargo customers affected by the fake accounts scandal.
• Bank Fees: In some cases of the Wells Fargo fake accounts scandal, customers say they were hit with more expensive fees due to the unauthorized bank account.
• Interest Charges: If a credit card was opened in the consumer’s name, they could face additional fees.
• Credit Report Changes: Consumers who are concerned over this possibility, should check over their credit report to see if there is an unauthorized credit card in their name.

Bank of America customers potentially impacted by fake accounts may be able to file legal action against the financial institution.