LA sues Wells Fargo, alleging ‘unlawful and fraudulent conduct’
Source: Los Angeles Times
Rigid sales quotas at Wells Fargo Bank have driven employees to open unauthorized accounts for customers, sticking them with bogus fees and damaging their credit, according to a city of Los Angeles lawsuit that echoes a Los Angeles Times investigation.
The civil complaint, filed Monday in state court in Los Angeles by City Attorney Mike Feuer, says the largest California-based bank encouraged its employees to engage in unfair, unlawful and fraudulent conduct through a pervasive culture of high-pressure sales. Employees misused customers confidential information and often failed to close unauthorized accounts even when customers complained, the suit alleges.
Some employees went so far as to raid client accounts for money to open additional accounts, the suit alleges.
The result is that 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, the lawsuit alleges.
Read more: http://www.star-telegram.com/news/nation-world/national/article20242080.html
msongs
(67,412 posts)ought to be criminal charges as well
Start at the top and start throwing them in the tank.
1StrongBlackMan
(31,849 posts)is/will be the $30,000/yr "customer service" rep. The American legal system doesn't have a Thomas Becket statute that would allow for prosecuting the mid-level manager, let alone, the Executives, that applied the sales quota pressure.
dmr
(28,347 posts)redruddyred
(1,615 posts)TexasTowelie
(112,217 posts)I don't know if that would apply at a broader level.
davidpdx
(22,000 posts)Other cities and states need to be encouraged to investigate and find out if there are similar cases. If so, I suppose it would be possible for LA to share the information they have with other jurisdictions. My guess would be that it is a company practice and therefore might open them up to federal prosecution.
redruddyred
(1,615 posts)well this is a step in the right direction anyhow.
now I've got to take a few towards my local credit union and finish some unfinished business.
Demeter
(85,373 posts)They've been getting a reputational rehab in the financial press, lately. Glad to see it's just BS.
BrotherIvan
(9,126 posts)Scuba
(53,475 posts)Dustlawyer
(10,495 posts)and then run them all through, biggest ones first so they can get NSF's since they hold your deposit up until they can get the NSF's.
Thor_MN
(11,843 posts)Doesn't make it any better, but Capitol One doesn't hold a patent on that.
SoapBox
(18,791 posts)Checks should be processed in the order received.
asiliveandbreathe
(8,203 posts)for an overpayment of closing costs on our re-fi with Wells Fargo, they would not apply their check along with my check for mortgage payment - because the only account I have with them is my mortgage. - They continued to try to sell me a savings and checking account...their excuse - rules are rules - I don't have an acct. other than mortgage..at WF..pathetic..(AZ) - and it was their check...
Nope, ain't gonna do it..I am so bundled with my Bank - SS - IRA etc..hubby's payroll..nope -
So, I had to write a new check, (I always carry a blank check) - my bank (savings and checking accts) had no problem cashing WF check for $6.00 -