Initial reports blamed individual Wells Fargo branch workers and managers for the problem, as well as sales incentives associated with selling multiple "solutions" or financial products. Wells Fargo clients began to notice the fraud after being charged unanticipated fees and receiving unexpected credit or debit cards or lines of credit. The creation of these fake accounts continues to have legal, financial, and reputational ramifications for Wells Fargo and former bank executives as recently as March 2023. The company faces additional civil and criminal suits reaching an estimated $2.7 billion by the end of 2018. News of the fraud became widely known in late 2016 after various regulatory bodies, including the Consumer Financial Protection Bureau (CFPB), fined the company a combined US$185 million as a result of the illegal activity. The Wells Fargo cross-selling scandal is the creation of millions of fraudulent savings and checking accounts on behalf of Wells Fargo clients without their consent. Controversy generated by fraud perpetrated by Wells Fargo
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |