Wells Fargo Scam Puts Other U.S. Banks in the Crosshairs
Richard Cordray, Director of the Consumer Financial Protection Bureau, tells FOX Business his agency is investigating potentially illegal activity at other banks similar to the scam perpetrated against unsuspecting customers at Wells Fargo (WFC).
“We’ve put the entire banking industry on notice that this kind of conduct is completely inconsistent with what it means to be a bank" he said.
Wells Fargo agreed to pay a $100 million fine and $85 million in penalties and restitution after it was revealed thousands of Wells Fargo employees were part of a “widespread illegal practice of secretly opening unauthorized deposit and credit card accounts” in order to meet sales goals and compensation incentives. In some cases, those fraudulent accounts earned the bank fees which it has agreed to refund to customers.
Wells Fargo announced on Monday that it would eliminate the sales goals and product cross-selling as a result of the investigation. FOX Business reached out to other banks to see if they had similar programs. JPMorgan Chase (JPM) and Bank of America (BAC) declined to comment. Citi (C) did not respond to a request for comment at the time of publication.