Wells Fargo Scam review – What is Wells Fargo ? Wells Fargo is a well known banking and financial company of the USA, based in San Francisco. This highly reputed bank is now ranked as the second largest bank in the world, with regard to the market capitalization. Though it was earlier ranked as the largest bank, as per the market capitalization; its popularity went down due to the revelation of a recent scam that had shaken its numerous customers all over the country. In this blog I will be doing Wells Fargo scam review and will try my best to illustrate everything about Wells Fargo.
Wells Fargo Scam Review – The Basic Facts
Here are the some basic facts that provides enough evidence to shut down Wells Fargo as a scam .
- In September 2016, it was revealed that thousands of Wells Fargo employees had created around 2 million fake checking and savings accounts. As well as 500,000 fake credit cards, which are not actually used by any of the real customers of this bank.The bank employees used the signatures, phone numbers, email ids and even PIN numbers of the existing customers of the bank, to create all these fake accounts and credit cards in their names, without informing them.
- This huge scam was the result of an incentive driven program that was set for boosting the performance level of the employees, which was supposed to be judged by the number of new accounts added by them to the bank.
- As a result of this scam, Wells Fargo was fined $100 million by the Consumer Financial Protection Bureau; $50 million by the City and County of Los Angles; as well as $35 million by the Office of Comptroller of the Currency.
- Approximately, 5300 employees of this bank were fired from their jobs, who were found to be responsible for creating this nationwide scam.
- Wells Fargo bank had to keep nearly $5 million, for compensating to their customers, who had been falsely charged with maintenance fees for the accounts and credit cards, which they had never authorized.
- The Chairman and CEO of Wells Fargo, John Stumpf had to resign from his post, due to the mounting pressure from the lawmakers of the land, in October 2016. He was immediately succeeded by Timothy J. Sloan, who was then the President and the Chief Operating Officer of that bank.
Wells Fargo Review – Financial Impacts
- Wells Fargo has already started paying the compensation to its affected customers, by refunding $25 per unauthorized account of this bank. The bank authorities have already paid $2.6 million as the compensation of the unauthorized accounts and credit cards. They will be paying all the rest of the refunds within a few months.
- Wells Fargo bank has informed its customers that hereafter they will be confirmed via email, within 1 hour of opening any account . And ,every application for credit card will be followed by an acknowledgement letter and decision status mail.
- As per the direction of the Consumer Financial Protection Bureau, every person should monitor all his/her bank accounts .So that they can immediately report to that bank branch, in case of any kind of fraudulence.
- Wells Fargo has lost much of its earlier reputation and reliability, due to this scam. It has lost accreditation from the Better Business Bureau, in the light of this scandal.
So , what’s the Final Review :
So , according to me some Wells Fargo bank staffs have committed a crime which most of the people working there were unaware of. Wells Fargo now is trying it’s best to regain it’s reputation . And , now it has also promised that this thing is never gonna happen again. So, I think Wells Fargo should be given a chance to prove it’s point.
This is all on Wells Fargo Scam Review . If I have missed important points, do let me know via comments.