Amanda Antell  |  February 1, 2019

Category: Banking News

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A confused man looks at papers and a laptop.It was only recently discovered that Wells Fargo opened up numerous fake accounts on their consumers, to allegedly meet sales goals. Wells Fargo allegedly created 3.5 million fake accounts in order to boost sales numbers.

Wells Fargo admitted to firing 5,300 workers in September 2016 for allegedly opening millions of fake accounts without customer authorization, with some of the former employees reportedly pretending to be customers by using fake email addresses.

These fake accounts were allegedly opened  due to the overwhelming pressure of unrealistic sales goals, which qualified workers for different employment benefits like bonuses. When this scandal broke in 2016, Wells Fargo quickly agreed to pay a $142 million settlement to resolve numerous allegations from customers.

Wells Fargo also agreed to reform its policies and expectations of sales goals, which is supposed to help curve this behavior.

Overview of Fake Accounts in the American Banking Industry

However, it has been reported that other banks like Capital One Bank may have also been opening fake accounts.

According to a report from American Banker, the Office of the Comptroller of the Currency (OCC) reviewed records from 40 large and medium sized banks and found that several major contributing factors that increased the likelihood of fake accounts at these financial institutions.

A spokesperson from OCC stated “short-term sales promotions without adequate risk controls, deficient account opening and closing procedures, and isolated instances of employee misconduct” were indicative of potential problems. While the OCC spokesperson did not specify the banks identified in its investigation, lingering fake accounts are a significant concern for consumers.

Even though no specific financial institutions were named in the OCC report, the agency stated there were commonalities in policies, procedures, and controls regarding their sales tactics.

The OCC also stated that many banks “have already taken” or are “in the process of taking corrective actions such as closing accounts, refunding customers, and fixing credit bureau information.”

Overall, the OCC issued 252 alerts to banks about these problems and identified five systemic issues that need to be resolved. The OCC had completed its review in late 2017, with the agency sending letters to affected banks in the same year.

Fake accounts being opened without customers’ permission was described as an “industry wide problem” by one former banker at a regional lender who talked to CNNMoney.

Customers of other banks like Capital One should be wary for any signs of a fake account being opened including:

  • Unusual Overdraft Fees
  • Unusual Bank Fees
  • Unusual Interest Charges
  • Services that Were not Signed up For
  • Credit Report Changes

Customers are advised to educate themselves regarding their bank and how their accounts work, and that bank representatives should take sufficient measures in explaining this when the accounts are opened.

In addition, customers should check their accounts to see if they are being charged for services they did not sign up for or additional products they did not want.

According to a report by American Banker, approximately 46 percent of customers wanted to switch banks after being surprised by unauthorized fees while only 6% were not surprised by what they saw.

Customers who find themselves experiencing unfair fees from having a fake account opened under their name, may be able to seek compensation for applicable financial damages.

An unauthorized bank accounts lawsuit investigation is now looking into banking sales practices at the following banks:

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

If you are a customer at one of the banks listed above and you were charged for fees from a bank account you did not open, you were issued a credit card you did not request, or you were enrolled in services you did not authorize, you may qualify to join this fake bank account class action lawsuit investigation.

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Join a Free Fake Bank Account Class Action Lawsuit Investigation

If your bank and credit union has engaged in deceptive overdraft fee practices, you may have a legal claim. Fill out the form on this page now to find out if you qualify!

An attorney will contact you if you qualify to discuss the details of your potential case.

PLEASE NOTE: If you want to participate in this investigation, it is imperative that you reply to the law firm if they call or email you. Failing to do so may result in you not getting signed up as a client or getting you dropped as a client.

In order to properly investigate fake bank account claims, you may be required to disclose bank statements to attorneys. Please note that any such information will be kept private and confidential.

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