An investigation from the Office of the Comptroller of the Currency shows that many banks are engaging in questionable sales practices, including the opening of fake accounts in customers’ names.

These fake accounts have been reportedly occurring at many major banks, which have been allegedly opening these accounts under their customers’ names without their consent.

According to a recent review from the Office of the Comptroller of the Currency (OCC), these fake accounts have been sprouting up in both large- and modest-sized banks. The review had investigated the sales practices at over 40 banks, with the OCC finding multiple systemic issues and hundreds of problems at individual financial institutions.

The OCC had also reportedly found examples of fake accounts, which were allegedly opened without the consent of consumers. Investigations into potentially fake accounts had been spurred after Wells Fargo made the news in 2016 and 2017, announcing that bank employees had allegedly opened millions of fake accounts to meet sales quotas.

Reportedly, if employees met these sales goals they were eligible for bonuses, which created an unreasonably competitive work environment that negatively impacted unsuspecting customers.

In total, Wells Fargo employees reportedly opened a total of 3.5 million fake accounts. In addition, some customers were reportedly signed up for services that they never agreed to including online bill pay. These fake accounts had allegedly caused customers to contend with unfair fees such as overdraft fees and interest charges.

Wells Fargo reportedly reached a $142 million settlement to resolve litigation over this issue. The bank agreed to revise its unrealistic sales expectations that had allegedly encouraged employees to use deceptive tactics to pad their sales numbers.

Overview of OCC Review

The OCC review found five industry wide problems and 250 other problems that regulators wanted certain banks to resolve. The OCC has yet to publicly describe the specific problems, or to name the banks at which they were found.

Soon after the OCC review was released, many banks reportedly took “timely actions” to fix any problems in their business practices.

According to OCC spokesman Bryan Hubbard, “systems and controls in these banks are now better integrated and more apt to identify inappropriate sales activities in a timely manner.”

This OCC review follows a recent settlement Wells Fargo recently agreed to pay in May 2018, reportedly set to pay $480 million to resolve a securities fraud class action lawsuit.

According to a press release, the lawsuit alleged various deceptive sales practices including material omissions and misrepresentations. While Wells Fargo had denied the allegations in the claim, the bank entered the settlement to avoid further litigation costs.

Customers who may have had fake accounts opened under their name and experienced unfair fees, may be able to file legal action against their bank. Signs of unauthorized banking practices can include overdraft fees, other bank fees, interest charges, and credit report changes.

Customers may be able to file legal action and seek damages for deceptive marketing tactics that caused them to experience financial harm.