In these many years, we all must have doubted our bank statements for once and checked it with bank personnel to find out the reason for extra fees charged. Although we know they always will have the answer for that. Now, what if we do not know about the accounts on our name for which we have been paying extra fees?
Yes, it’s true, true in case of very well-known and reputable bank, WELLS FARGO. I know you won’t believe it in the first go but there aren’t any sophisticated words to put it across. Wells Fargo employees have been charged for creating unauthorized bank accounts and credit card accounts for their customers and moving the funds from their actual accounts to these phony accounts which has led many customers to pay extra fees and on the other hand resulting in bank’s unwarranted profits.
They accomplished this by opening many fake email ids and generating phony pins to open the accounts of their existing customers without their consent and then moving the funds from their actual accounts to these fake ones.
Customers paid for ATM and overdraft fees without knowing what’s going inside their account until they were caught.
Isn’t that shocking. The number is huge and if put on record, apart from phony bank accounts, the employees even opened 565,443 credit card accounts without their customer’s acknowledgment. Bank crudely experienced $400,000 in fees from 14000 of those credit card accounts which comprised annual fees, overdraft-protection and interest charges.
To cut it short, they made the biggest unwarranted profit with customer’s money and now it’s time for them to pay. The bank is charged with $185 million in penalties, along with $5 million as compensation to its customers.
Employees are blaming Well Fargo’s sales target and strict measures which made them follow these unethical tactics.
“At Wells Fargo, when we make mistakes, we are open about it, we take responsibility and we take action.”
this was the quote in one of the memos introduced to the employees by the Bank. But nothing of that seems true in this case.
This scam has not only costed them a huge fine but their customer’s trust and without exacerbating the situation, I would like to quote:
“Many customers have closed their accounts with the bank and have also warned their close friends and family.”
According to the sources, Bank is required to alert its customers about the scam and ask them to verify their accounts and close those which are doubtful and not required.
The unjust is already done and its now us who will have to create awareness so that we keep a track of our bank accounts.