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Wells Fargo has been hit with a $3 billion fine from federal authorities in relation to the banking giant’s fake accounts scandal.
The fine was reached as part of a settlement with the Justice Department and the Securities and Exchange Commission.
The $3 billion deal, which was years in the making, resolves federal claims that Wells Fargo participated in a massive fake accounts scheme.
While pursuing action against the bank, federal persecutors criticized Wells Fargo for the “staggering size, scope and duration” of their unlawful scheme.
According to CNN, the new CEO of Wells Fargo supports the settlement and criticized the past unlawful conduct. CEO Charlie Scharf, who only joined Wells Fargo in September, said “the conduct at the core of today’s settlements — and the past culture that gave rise to it — are reprehensible and wholly inconsistent with the values on which Wells Fargo was built. Our customers, shareholders and employees deserved more from the leadership of this company.”
Unlike civil settlements, where oftentimes the defendant does not indicate any wrongdoing, Wells Fargo admitted to the scheme as part of the deal. The bank admitted that it created unauthorized bank accounts for consumers between 2002 and 2016. Wells Fargo has also acknowledged the consequences of its actions, including false bank records, consumer credit damage, misuse of personal information, and the collection of millions in fraudulent fees and interest.
“Today’s announcement should serve as a stark reminder that no institution is too big, too powerful, or too well-known to be held accountable and face enforcement action for its wrongdoings,” U.S. Attorney Andrew Murray for the Western District of North Carolina said, according to Forbes.
Although the federal claims against Wells Fargo have been resolved, the deal does not resolve the potential for federal prosecution against guilty bank employees who wrongfully opened the accounts. The deal similarly does not resolve any class action lawsuits filed against Wells Fargo from consumers in civil court.
In 2018, one class action settlement did resolve some claims against Wells Fargo in relation to its fake accounts scandal. In the settlement, Wells Fargo agreed to pay $142 million to consumers who had an unauthorized account opened in their name between May 1, 2002 and April 20, 2017.
A variety of benefits were available under the class action settlement, including fee reimbursement and credit impact damages. The fee reimbursements varied from a full refund to a flat payment to consumers, depending on when the relevant accounts were opened.
Credit impact damages were to be awarded on a case by case basis, but could compensate consumers for higher interest rates due to credit consequences of a fake Wells Fargo account.
The class action lawsuit settlement was approved by a California federal judge in May 2018, although payments have not yet been made from the settlement. There are reportedly several appeals pending against the settlement. Class Members will not receive compensation until all of the appeals are exhausted.
Did you have a fake bank account opened in your name by Wells Fargo? Share your experiences in the comments section below.
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39 thoughts onWells Fargo Faces $3B Fine Over Fake Accounts
They took my check for 2 months to pay all the over draft fee , I lost my he and was homeless
I reported my card lost in August and had to go in the bank to get money cause they never sent me a replacement card October, November they kept all my checks cause their was card useage from October to November then when I went to complin and they said sorry they have to close me out cause I am high risk for their insurance but it wasn’t my fault
I did what I was supposed to , I reported my card when I couldn’t find it coming back from a beach trip and I was charged for transaction I didn’t make and it cost me my home and closed account and ruin my credit . And I still haven’t heard anything back from the settlement.. it been 2 years all ready ..
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I called the police on wells fargo because they took my money out of my acct and said. It was used to pay a persons mary kay acct
And that she live south of ft. Worth. The police man said my request is impossible to do but he did fill out a compliant this was in 2007 to 2009
Add Me… They opened an account for me in my name without permission and when I caught on to it and questions came up they replied because I needed it so they did it for me and come to find out I really didn’t need it I already had one ,
Add me please..
I walked into the wells Fargo bank to try to cash my paycheck which had there name posted on it to cash it are else I never would have gone in there ,I knew from my parents experience as a kid well Fargo bank was a bad bank and not to bank with them…2014
When I walked into to try to cash my payroll check that my employer bank at not I and the town I work in at the time did not have my bank there…
I was told that the system was totally down and that if I leave my name and number they call me whenever it comes back on so I can cash it,, I left just my first name and cell phone number.. about 3 weeks later I get papers from wells Fargo bank inside was a bank card and thanking me for opening a new account with them,, yeah what a nightmare
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I already have a claim on file would someone contact me please
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This happened to me and they stole over $3500 from my sons saving acct. When contacted they said nothing happened but my sons acct. It did! Now its empty.
I believe this happened to my mom. She went into the bank for and another reason completely and was talked into opening another account. They basically told her it was necessary have a separate account, I think for paying bills, and confused her very badly. She had nothing but trouble once she did that. Which included fines and all kinds of hassles. I had to go in with her to the bank to make them close that account down. I wanted to be there to make sure they did not talk her into keeping it or something else. On another occasion when I was inside Wells Fargo they tried to get me to do the same thing. But since I’d already going through it with my mom and her account I do not oblige.
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