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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
Add me please
Yes, i were told by my emails that i get from their bank. I don’t understand how they got my information so please add me also.
I had a fraudulent account opened in my name in 2010 wells Fargo knew it was fraudulent and I’m still fighting it in 2020..I tried to open an account wells Fargo let me open or took my money then I got a letter in the mail 3 days later stating they were closing the account due to a balance from the fraud account.
I had a fraudulent account opened in my name in 2010 wells Fargo knew it was fraudulent and I’m still fighting it in 2020
I constantly receive emails and sometimes textes from Wells Fargo about an account but I don’t have an account with Well Fargo Bank. My mother was an account holder but she is deceased and I was only a beneficiary on her account not an account holder.
Maybe this happened to me. I also went to cash a check written on Wells Fargo. I gave the teller my check and id and answered no that i didnt have an account. She excused herself and i stoid there for 10 min. I knew something was wrong. They asked me about previous address and any accounts i had with them. I had no current accounts. They refused to cash the check but wouldnt tell me why. I refused to leave wothout more info. They called police i didnt care. I done nothing wrong. Police arrived and told me i must leave. Said just wanted my check cashed. Told that wasnt happening said well i want my check and id back. Cops retrieved my ID AFTER WF made copies of it!!! Woukdnt give me check. Police said it bc they are suspecting fraud bc “I” already had an account. So i must be frauding someone. The police did verify my ID was real. I had to have the check issuer cancel the check and reissue it. I kept calling wf re: this account i supposedly had ablnd they kept tellling me the strangest thing. That if i dont have an account with them as i claim then they cant give me any info bc they are bound by law to protect client privacy.
Yet they claim I am the the customer.
And what about my rights?
And how does one gst the information needed to persue possible identity theft.
It was a nightmare that made me suck and finally just let it go to save my sanity.
Btw this was in like 2012 ir 2013
I had 3 accounts opened in my name and my business name. I also had ISF charges on one of the accounts for 13 returned checks totaling over $500 which is how I became aware of the accounts. One was in my name:
Wilson W. Wyatt
The other two were in business names that I own;
Wilson Wyatt Studios, LLC and
Barrows Media.
I opened an account with Wells Fargo when I moved to Utah in 2017 and it was closed because they said I had an outstanding debt with the bank totaling over $500 from a fraudulent account. When I spoke with them and told them what that was from and actually they should be paying me damages I felt I had no recorse.
This was very upsetting as it affect my credit and business banking. And it. Looks bad to employers and other Banks.
I was so happy when someone said I should look you up on the computer and this was listed. Please let me know what I need to do to regain money and get them off my credit report!
Thank you,
Wilson W. Wyatt III
Add me please this is terrible
Please add was denied an account now suddenly I owe for accounts was told. Wasn’t approved
Please add me. I was a victim
Add me
Still receive mail.
Several accounts opened under my name. I called and said I never understood why I had so many debit/credit cards. They helped close accounts. Please add me to settlement.