Attorneys are currently investigating the possibility that TDBank and others have opened fake bank accounts similar to those in the Wells Fargo fake accounts scandal.

In 2016, the Wells Fargo fake accounts scandal was constantly in the news. An investigation revealed that employees of the bank had opened 3.5 million fake bank accounts without permission from customers. The fake accounts scandal was reportedly motivated by Wells Fargo’s high stakes sales goals which were awarded with lucrative bonuses.

After the fake accounts scandal was revealed, the government ordered Wells Fargo to pay $142 million in penalties. Fines were also levied against the bank and a widespread overhaul of their sales system was required. The latter aimed to diffuse the high stress and competitive sales environment which lead to the fake accounts being created in the first place.

In the wake of the Wells Fargo fake accounts scandal, the Office of the Comptroller of the Currency (OOC) opened an investigation into 40 large and midsized banks. The investigation was looking for any signs of fake bank account practices and other violations.

OCC Investigation

In a June 2018 article, American Banker reported that the OCC’s investigation had found numerous cases of fake bank account practices. Bryan Hubbard, a spokesperson for the OCC, told American Banker that the opening of fake accounts seemed to be commonly motivated by “short-term sales promotions without adequate risk controls, deficient account opening and closing procedures, and isolated instances of employee misconduct.”

Following the investigation, the OCC reported that it had issued warnings to the entire banking industry about five issues and over 250 directives to individual banks for them to fix.

It’s possible that TDBank and others may have received these warnings. But despite the massive amount of corrective action taken, the OCC has maintained that they will not reveal the identities of the banks involved in the investigation, nor will they confirm any of the issues. However, the OCC has noted that issues found in the investigation have been resolved.

“Most banks took timely actions during the review to address weaknesses in policies, procedures, and controls; incentive programs; and their risk governance frameworks,” Hubbard said in an email statement to American Banker. “As a result, systems and controls in these banks are now better integrated and more apt to identify inappropriate sales activities in a timely manner.”

Although the OCC has maintained their silence, attorneys are still looking at several banks for potential signs of a fake accounts scandal. Banks included in the investigation include Bank of America, BOK Financial, Capital One Bank, HSBC, Royal Bank of Canada, and TDBank.

Should attorneys uncover evidence of a fake accounts scandal at TDBank or another bank, consumers may be able to move forward with legal action against the offending banks. A fake bank account lawsuit may be able to recover compensation for financial damages and penalties for unlawful behavior.

While attorneys are investigating, customers of TDBank and other banks should remain vigilant and monitor their financial situation for signs of fake bank accounts. Signs of fake bank account practices may vary, but common warning signs include overdraft fees, bank fees, interest charges, and credit report changes.