Wells Fargo appears to have a history of fraudulent decision-makers and employers. Consider this a public service announcement for those account-holders of Wells Fargo. As noted in the LA Times, the city is suing the big bank.
But this is clearly not the first rodeo for Wells Fargo as in New York in 2013:
QUEENS ATTORNEY AMONG THREE INDIVIDUALS CHARGED IN $3.3 MILLION MORTGAGE FRAUD OPERATION
Defendants Face Up To 25 Years In Prison If Convicted
Queens District Attorney Richard A. Brown, joined by New York State Department of Financial Services Superintendent Benjamin M. Lawsky, today announced that three individuals – including a Richmond Hill attorney and his sister – have been charged with conspiring to commit mortgage fraud and larceny from Wells Fargo Bank by fraudulently obtaining mortgage funds in excess of $3.3 million pertaining to the purchase of six properties – including four in Queens – during a six-month period in 2008. More here.
Then there was a case with Freddie Mac.
WASHINGTON — Wells Fargo & Co. has agreed to an $869 million settlement with Freddie Mac over claims on home loans it sold to the government-controlled mortgage finance company.
The agreement announced Monday by Wells Fargo involves mortgages sold to Freddie before January 2009. Wells said the amount of the agreement was adjusted to reflect credits for previous claims payments, resulting in a cash payment to Freddie of about $780 million. Freddie and its bigger sibling Fannie Mae demanded that Wells Fargo and other big banks buy back mortgages they sold that later soured in the housing bust.
Now there is May of 2015, where the City of Los Angeles has Sued Wells Fargo:
Complaint Also Alleges Wells Failed to Notify Customers of Unauthorized Use of Personal Information
LOS ANGELES – City Attorney Mike Feuer today announced that his office has filed a civil lawsuit against Wells Fargo, alleging the company has victimized consumers by opening customer accounts, and issuing credit cards, without authorization–then failing to inform customers of the alleged misuse of their personal information or to refund fees for unwanted services.
“Consumers should be entitled to expect that major financial institutions will treat them fairly,” said Feuer. “Our lawsuit alleges that in Wells Fargo’s push for growth the bank often elevated profit over its customers’ legal rights.”
The complaint alleges Wells Fargo’s business model imposed unrealistic sales quotas that, among other things, have driven employees to engage in unlawful activity including opening fee-generating customer accounts and adding unwanted secondary accounts to primary accounts without permission. These practices allegedly have led to significant hardship and financial loss to consumers, including having money withdrawn from customer’s authorized accounts to pay for fees assessed by Wells Fargo on unauthorized accounts and derogatory notes on credit reports when unauthorized fees went unpaid, causing some customers to purchase identity theft protection.
Furthermore, the complaint alleges that Wells Fargo failed to properly inform customers of misuse of their personal information and failed to refund unauthorized fees. Read more here on the press release.
