Tags: wells fargo | fake | bank | accounts

Wells Fargo Fake Bank Accounts: 1.4 Million More Found

Wells Fargo Fake Bank Accounts: 1.4 Million More Found

A sign is posted at a Wells Fargo Bank branch office on July 14, 2017, in San Francisco, California. (Justin Sullivan/Getty Images)

By    |   Friday, 01 September 2017 10:22 AM

Wells Fargo announced Thursday that its fake bank accounts scandal was much larger than previously believed, with an outside review finding 1.4 million more fraudulent accounts, 67 percent more than previously believed.

Federal regulators have already penalized the bank with fines totaling $185 million because of its sales practices, leading to new leadership and an overhaul of its retail division, Bloomberg noted. The new revelations could threaten Wells Fargo's $142 million class action federal court settlement with customers that was approved preliminary in July, the news agency said.

"Wells Fargo is not going to roll over and give up its real numbers, and their admission that they had more fake accounts all along just confirms that," Steven Christensen, who represents about 70 named plaintiffs in Utah, told Bloomberg. "Until a court compels Wells Fargo to turn it all over, we'll never know what really happened."

Scott Wert, who is representing five named plaintiffs in Texas, told Bloomberg that attorneys were preparing written objections to the settlement, which may be filed over the next 15-30 days.

"We apologize to everyone who was harmed by unacceptable sales practices that occurred in our retail bank," Wells Fargo chief executive officer Tim Sloan said in a company statement Thursday. "To rebuild trust and to build a better Wells Fargo, our first priority is to make things right for our customers, and the completion of this expanded third-party analysis is an important milestone.

"Through this expanded review, as well as the class action settlement, free mediation services, and ongoing outreach and complaint resolution, we've cast a wide net to reach customers and address their remaining concerns."

The bank said in its statement that from May 2011 through mid-2015, it identified approximately 2.1 million potentially unauthorized accounts. The bank said that through an expanded review dating back to January 2009 up to September 2016, an overall total of 3.5 million potentially unauthorized accounts were flagged.

The Wells Fargo scandal exploded last September when federal regulators accused the bank of secretly opening unauthorized accounts and credit card accounts for customers without their knowledge, CNN reported.

Bank employees told federal regulators that the accounts were open to hit sales targers and receive bonuses, Richard Cordray, director of the Consumer Financial Protection Bureau, had said, CNN noted. Some 5,300 were fired by the bank in connection with the scandal.

© 2018 Newsmax. All rights reserved.

   
1Like our page
2Share
TheWire
Wells Fargo announced Thursday that its fake bank accounts scandal was much larger than previously believed, with an outside review finding 1.4 million more fraudulent accounts, 67 percent more than previously believed.
wells fargo, fake, bank, accounts
393
2017-22-01
Friday, 01 September 2017 10:22 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved