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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
We just had an account sent to us! My husband had one and I had one. We have no idea where this account come from??♀️There were a couple ofstudent loans we paid for too that we knew there was only one, but they added a couple more. Then, January 2021, they sent out another account that we did not have trying to collect money from us on it!
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I just got a Check in the mail in Washington state in the form of a postcard but a legitimate check for $587.36 and my husband received a check for $571.66. I don’t remember how many unauthorized accounts were opened on the top of my head but I’m not complaining at all!
I had accounts with Wells Fargo that were mine they also opened fraudulent accounts ended up causing problem with my accounts and closed mine for fraud! In 2015 Just now have been getting all types of emails and letters with different unauthorized account numbers and myself contacting Wells Fargo and going in circles with no answers. I lost a good bit from what happened with my own accounts all because of their fraudulent activities and these fake accounts. And I have been trying to find something out to see if I can do anything to get compensated and get sent to 10 different people and different departments that tell me nothing! The Banks even told me several times that they had been wrong also received a letter and emails stating the same but still nothing to help me? I don’t know what else I need to do. Was told I miss the 2018 claims filing deadline? I didn’t know about it? Ughh !
I had a checking and savings account opened in my name in a completely different state than I stay in 2009 or 2010 and didn’t know about it until a creditor and a lawyer contacted me about it. I’ve been trying to dispute this with the police, the bank, and the creditors and haven’t had any luck. The bank filed a dispute for me and said that I would be notified when the issue is resolved and it’s been almost 2 yrs and I still haven’t heard from them. What do I do now?
I had mortgage payments pulled from my direct deposits every 2 weeks. And I began receiving late fees for insufficient funds in my bank account. When I asked how this was possible they claimed the deposits were past the due dates. I was paying 600.00 on a 420.00 loan. They refused to explain and then began foreclosure on the house after I went to my local consumer credit counseling service. Extra charges were continuously adding up inspite of my direct deposits and payments.
I had my son’s account at the same bank and depositing money each month for his future. I received a letter from Wells Fargo that his account was a foreign account and I needed to provide them with the country’s account access number. I called and asked what that was all about. He only had $5.00 in the local savings account. I know there was around $3000 in his account.
I received no help to correct this and never seen his money again. We have never been to another country so it was impossible.
They totally refused to work with us. And we ended up losing our house because of it.
I submitted complaints over the phone and through the mail. Received no response. No phone call. After 5 years of battling, I lost everything.
I have a claim number and filled out the paper work but never got any settlement.
Have had 2 fake accounts opened through Wells Fargo. I called and they said that they had caught it and it was already closed. Then I received a zero balance bank statement to my home address for another account that was fraudulent
I keep getting emails saying i put a deposit in my account, when i did not deposit any funds in my checking account
I have kept a snapshot of the emails that i get.
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Add me told they didn’t close account so they open up another