Wells Fargo Fraud Allegations in CA Call for FTC Investigations in Other States

  • by: Susan V
  • recipient: Jessica Rich, Director, US Bureau of Consumer Protection

Can you trust your bank? The city of Los Angeles has just filed suit against Wells Fargo alleging "unlawful and fraudulent conduct." Allegations include:

  • Misuse of customer's confidential information;
  • Bank employees raiding funds from existing customer accounts to open new accounts in their names without their knowledge, and then charging fees on those accounts; and
  • Bank employees failing to close fraudulent accounts even after customers complained.

Wells Fargo says the company has already dealt with the problem caused by a few "rogue employees," but City Attorney Mike Feuer claims bank policies pressured employees into committing unlawful acts.

The city's lawsuit alleges that customers were financially harmed by a rigid sales quota that pushed bank employees to open unauthorized customer accounts and charge bogus fees. Then the bank allegedly reported damaging credit information when the fees weren't paid.

According to the city's complaint: "Wells Fargo has generated a virtual fee-generating machine, through which its customers are harmed, its employees take the blame, and Wells Fargo reaps the profit."

If bank policy incentivized misconduct, consumers deserve to know the extent and potential harm to bank customers in other states and/or with other banks.

Help protect your money and credit! Ask the Federal Trade Commission's Bureau of Consumer Protection to launch a 50-state investigation of Wells Fargo and other banks to investigate the extent of these practices and — if necessary — take action to stop them.

Dear Director Rich,

I am deeply concerned by allegations raised in a May 2015 lawsuit filed by the city of Lawsuit against Wells Fargo and strongly urge your bureau to investigate the extent of bank misconduct by Wells Fargo and other banks in states across the US.

[Your comments here]

The city's lawsuit alleges that Wells Fargo's customers were financially harmed by a rigid sales quota that pushed bank employees to open unauthorized customer accounts, charge bogus fees, and then report damaging credit information when the fees weren't paid.

Trust in our financial institutions is the foundation of a working economy. I hope that your staff will do everything in their power to discover the extent of these practices among banks across the US and, if necessary, take action to restore consumer confidence in the banking industry.

Sincerely,

[Your name]
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