Since 2011 Wells Fargo (WFC) employees have been creating millions of unauthorized bank and credit card accounts in the names of current customers without the customers knowledge. These phony accounts charged unwarrented fees to customers while allowing Wells Fargo employees to boost their sales figures and receive more bonuses.
Wells Fargo employees moved funds from customers’ existing accounts into newly-created ones without their knowledge or consent. Customers were being charged for insufficient funds or overdraft fees, because there wasn’t enough money in their original accounts. Wells Fargo employees also also created credit card account applications for 565,443 for their customers without their knowledge or consent. Roughly 14,000 of those accounts incurred over $400,000 in fees, including annual fees, interest charges and overdraft-protection fees.
Wells Fargo paid $185 million in fines and has promised to pay full restitutions to all victims has fired 5,300 employees related to these phonie accounts over the last few years.
None of the senior management was fired or held accountable and all management in charge during this fraud still receive bonuses. The main Wells Fargo Executive, Carrie Tolstedt, who managed the unit that opened phony accounts unit, retired after this scandal walking away with $125 Million.
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