*If you are one of the customers who bank with Wells Fargo, and found yourself confused at some point when you got an overdraft notice for money you just KNEW was in your checking account, when you last checked? You’ll want to hear this.
The bank was recently slapped with $185 million in fines after it was discovered that bank employees had been opening new accounts for customers, that the customers had not authorized or expressed any interest in having.
Not only that, the employees were found to be transferring money, signing customers up for credit cards; activating debit cards — oh god, the list goes on.
All of this without the customers expressed authorization.
Because bottom line, they wanted to look good to the boss and get the commission that comes along with opening up new accounts, so they inflated the sales figures by taking the aforementioned actions.
‘Memba gramma used to say, ‘Cain’t [sic] trust NOBODY!’ That would apply here.
And according to the Consumer Financial Protection Bureau (CFPB), Wells Fargo had already fired upwards of 5,300 employees for the same thing in 2011.
What year is this again? Oh, 2016. Right.
And I’ll bet you dollars to donuts all of this was done with a straight face.
Now the bank has been slapped with an additional $100 million fine (in addition to fines from other federal regulators).
There’s also a name that “insiders” have given to this boosted sales practice: It’s called sandbagging.
“This widespread practice gave the employee’s credit for opening the new accounts, allowing them to earn additional compensation and to meet the bank’s sales goals,” said the CFPB in a press release published Thursday. “Consumers, in turn, were sometimes harmed because the bank charged them for insufficient funds or overdraft fees because the money was not in their original accounts.”
But hold up, there’s more.
One of the bank’s execs, a woman named Carrie Tolstedt, had put in a retirement notice a while back. It becomes effective at the end of the year. And guess how much girlfriend is walking away with?
I have one question at this point: Can I be your BFF?
I’m Black (in style right now), attractive, and I have been told you can “take me anywhere,” so what do you think? No wait, I have one more question. Can you at least be my mentor?
I mean seriously, how is it that Tolstedt was actually overseeing the department accused of the scam; the same department that has now caused the bank to be fined millions, yet her boss has nothing but glowing things to say about her!
I NEED YOU TO BE MY MENTOR!!!!
According to a Gizmodo report …
Wells Fargo is not admitting to any misconduct, nor will they punish any of their execs. According to a report in Fortune, after the financial crisis in 2008, Wells Fargo created “clawback” provisions that held employees accountable for this type of misconduct. The whole point of the provisions was to prevent banking executives from receiving huge paydays if (or when) they were found to be responsible for illegal behavior.
THIS NEW ‘ISSUE’ is the bank’s first opportunity to use the provisions,. But Wells Fargo is not asking for any money back from department head, Tolstedt. In July, when she announced her plans to retire at the end of the year, she was praised by CEO John Stumpf, who said she was “a standard-bearer of our culture, a champion for our customers, and a role model for responsible, principled and inclusive leadership.”
Well! Go ‘head wit ‘cho bad self!
The bank released a statement following the fines dished out from various federal regulators last week.
SMH. But please, holla back if you consider my offer Ms. Tolstedt.