Did Wells Fargo charge you because of a fake account?

[Sunset]

I don't have an account with them, thankfully, but if you did and were charged overdraft, or credit card fees, by surprise, maybe this is why.

How can we trust bank employees who get bonuses based on sales ?

5,300 Wells Fargo employees fired over 2 million phony accounts - Sep. 8, 2016

"
Wells Fargo employees secretly created millions of unauthorized bank and credit card accounts -- without their customers knowing it -- since 2011.
The phony accounts earned the bank unwarranted fees and allowed Wells Fargo employees to boost their sales figures and make more money.


"Wells Fargo employees secretly opened unauthorized accounts to hit sales targets and receive bonuses," Richard Cordray, director of the Consumer Financial Protection Bureau, said in a statement.

Wells Fargo confirmed to CNNMoney that it had fired 5,300 employees over the last few years related to the shady behavior. Employees went to far as to create phony PIN numbers and fake email addresses to enroll customers in online banking services, the CFPB said "

 

[pb4uski]

Stunning revelation. Mom has a Well Fargo bank account that I started regularly monitoring in early 2014 so I know nothing happened since then... prior to that I have no idea.

 

[LOL!]

WF customer since 1994 with checking, brokerage, etc. Never been charged a fee that stuck. Back in 1996 I think they tried to institute a $1 per month statement fee which didn't work as we always got the fee reimbursed. It probably took more than $1 of their time to deal with complaints, so they got rid of it. No fees before or since.

 

[candrew]

Wells Fargo & Fake Accounts

This comes as no surprise as I have two coworkers who were former W.F. bank branch employees. Both told me how they were constantly harangued by branch managers to "upsell" customers for additional services, accounts, investment products, etc. Their performance reviews, raises & bonuses were heavily weighted by these "sales".

We are long term WF bank customers and I found those sales tactics by tellers to be annoying. It seems recently that our local branch has backed off on that approach.

 

[jazz4cash]

Seems like a criminal offense to me.


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[jazz4cash]

This comes as no surprise as I have two coworkers who were former W.F. bank branch employees. Both told me how they were constantly harangued by branch managers to "upsell" customers for additional services, accounts, investment products, etc. Their performance reviews, raises & bonuses were heavily weighted by these "sales".



We are long term WF bank customers and I found those sales tactics by tellers to be annoying. It seems recently that our local branch has backed off on that approach.

Well at least they asked!



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[thefinancebuff]

I don't have an account with them, thankfully, but if you did and were charged overdraft, or credit card fees, by surprise, maybe this is why.

How can we trust bank employees who get bonuses based on sales ?

5,300 Wells Fargo employees fired over 2 million phony accounts - Sep. 8, 2016

"
Wells Fargo employees secretly created millions of unauthorized bank and credit card accounts -- without their customers knowing it -- since 2011.
The phony accounts earned the bank unwarranted fees and allowed Wells Fargo employees to boost their sales figures and make more money.


"Wells Fargo employees secretly opened unauthorized accounts to hit sales targets and receive bonuses," Richard Cordray, director of the Consumer Financial Protection Bureau, said in a statement.

Wells Fargo confirmed to CNNMoney that it had fired 5,300 employees over the last few years related to the shady behavior. Employees went to far as to create phony PIN numbers and fake email addresses to enroll customers in online banking services, the CFPB said "

The story doesn't sound complete. Employees created unauthorized accounts using your name and address. You would've received the paperwork and debit card or credit card the bank sent. If you didn't want them you would call the bank and close them. If you kept them open you would've received statements. How can you be charged overdraft fees if you never use them? Among all the unauthorized accounts, how many accounts generated how much fees the bank didn't reverse? I doubt the consumers affected actually paid much in fees.

 

[zinger1457]

I had a Wells Fargo mortgage, a WF checking account, and a WF HSA account. Only the HSA account is still active but not for long because they recently sold their HSA business to Optum Bank. I never had any negative issues with WF like extra charges or being harassed by the sales staff. They were always helpful in notarizing any documents I needed signed, no charge. Just recently closed my WF checking account to take advantage of a Chase bonus offer.

 

[GrayHare]

If only customers could get a balance between that sort of thing and the obstructiveness banks are also known for. When a bank wants new business they make things easy. Within the past few years I've gone into a bank, been offered a credit card, and been approved without showing any ID or being asked for any non-public info. Just name and address and the card was on its way.

 

[Lakewood90712]

This stuff was well known for a long time www.youtube.com/watch?v=_K9pJlRldJ0 Most of the retail banks beat the crap out of the front line employees to get sales, not just Wells.

PS, Been a Wells Fargo customer for over 30 years, never had and services or products crammed on my account.

 

[Sunset]

The story doesn't sound complete. Employees created unauthorized accounts using your name and address. You would've received the paperwork and debit card or credit card the bank sent. If you didn't want them you would call the bank and close them. If you kept them open you would've received statements. How can you be charged overdraft fees if you never use them? Among all the unauthorized accounts, how many accounts generated how much fees the bank didn't reverse? I doubt the consumers affected actually paid much in fees.

I know it sounds crazy and mostly illegal, but people will do all sorts of terrible stuff because the boss ordered it.

How much, if you read the article, they are setting aside $5 Million to repay customers. Who knows what the real number would be, although you would think the Bank has records and can tell the real number.

 

[upset264]

We have two checking accounts with debit cards, no credit cards with Wells Fargo. Never paid a cent in fees. On the contrary we get a free safe deposit box. I have always found the staff to be helpful particularly when dealing with the recent passing of my father.

If a checking account is opened aren't checks mailed to the address? Isn't a credit card mailed to the address?

 

[Winemaker]

Been a customer since 1991, never had a problem, other than a mail solicitation for a cc, another loan or insurance.

 

[eytonxav]

Oh the games that get played when objectives are not being met and compensation is on the line. Any how, I have several accounts with WF and not aware of any such shenanigans.

 

[easysurfer]

Perhaps WF new acronym should be WTF?

If you can't trust your bank, then who can you trust?

 

[Sojourner]

Perhaps WF new acronym should be WTF?

Seriously though, how exactly would all this work? Assuming a WF employee created a phony account using an actual customer's personal info, how would that account have been funded? And wouldn't any fees that were generated by that fake account have triggered notices (emails, letters, calls, etc.) to the actual customer? Need to read more about this to fully understand it, I guess.

 

[MRG]

This stuff was well known for a long time www.youtube.com/watch?v=_K9pJlRldJ0 Most of the retail banks beat the crap out of the front line employees to get sales, not just Wells.

PS, Been a Wells Fargo customer for over 30 years, never had and services or products crammed on my account.

I've frequently hard sells from another large bank, here in America.

 

[Lakewood90712]

Seriously though, how exactly would all this work? Assuming a WF employee created a phony account using an actual customer's personal info, how would that account have been funded? And wouldn't any fees that were generated by that fake account have triggered notices (emails, letters, calls, etc.) to the actual customer? Need to read more about this to fully understand it, I guess.

Not phony accounts at all. The accounts were all real accounts, opened without the consent of the customer. As to notices and fees , a lot of people are oblivious to the flood of information from financial institutions , including fees deducted on statements. PS , in the case of opting for online statements, as is encouraged , if you don't look for it , you don't see it. Perhaps the bulk of the unauthorized accounts also had online statements .

 

[eytonxav]

Seriously though, how exactly would all this work? Assuming a WF employee created a phony account using an actual customer's personal info, how would that account have been funded? And wouldn't any fees that were generated by that fake account have triggered notices (emails, letters, calls, etc.) to the actual customer? Need to read more about this to fully understand it, I guess.

I heard they moving $s temporarily in and out to fund these ficticious accounts.

 

[MRG]

Seems like a criminal offense to me.


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+1
I have no idea why they are not changed.

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[Texas Proud]

I find it interesting that it has been going on for years.... and that 5,300 employees were laid off...

We have been told over the years how great WF is compared to all the other 'bad banks'.... now, I guess all are bad...


Now the question is are their financials correct... probably not enough here to affect their prior stmts, but you never know...

 

[dallas27]

Seems like a criminal offense to me.


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By 5300 underlings, or by management?!


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[JoeWras]

Sounds a bit like what the phone companies do with "cramming".

 

[jazz4cash]

By 5300 underlings, or by management?!


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That's a good point. Both I guess but I don't have details to decide. The 5300 people is 2 pct of their payroll, but a much larger pct of employees actually in a position to abuse customers. If these 5300 were doing something adverse to the bank, mgt would have detected the problem. I've always considered WFC to be a great organization but no longer. I had the stock on my watch list and have family that work there in non sales positions. As much as I hate to blame the victims, they have some skin in this also. I read they reimbursements averaged $25, an amount that could be easily missed.


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[MichaelB]

WF is the industry leader in cross platform product sales. It's their pride and joy, and their largest shareholder (Mr. Buffet) has mentioned this as one reason he likes it so much. The branch personnel aren't harangued to sell - it's much worse - they have quotas, and not meeting quota is cause for job loss. This unavoidably leads to overselling. It would be no surprise to learn that some of those 5K were fired for not meeting quota.

We closed our account with WF after being charged for a service we neither wanted nor requested. When I complained they just kept sending me to speak with someone else in the branch, and on the phone, after numerous calls and escalations, they finally just said "tough luck" and hung up. I filed a complaint with the federal regulators, and it appears others did the same.

IMHO it is always a bad sign when a bank employee is more afraid of the branch manager than an irate customer.