If you have been keeping up with the news like I have you know that another bank ( Wells Fargo ) has been caught doing something unscrupulous which may or may not have an impact on you.
This article is being written to give you some of the details in the event you are one of the customers caught up in this scandal as it has hurt approximately 2 million customers according to CNN reports.
Yes, the country’s largest bank ( Wells Fargo) was found to have been opening up accounts without getting permission from their clients. They did so in order to build up the number accounts on their books which were directly related to the size of the bonuses they would receive.
What may this violation so bad was that this occurrence has been going on since 2011 and possibly further back than that. A special committee from Congress is currently investigating the problem and based on what they have found thus far the bank is guilty of this illegal practice. As a result, they will be fined millions of dollars and be required to restructure their sales procedures throughout the firm to make there are no other problems.
How are you involved in this process you may ask? And the answer is I don’t know whether you have an account with Wells Fargo bank or not. But if you do, I’m suggesting that you request that Wells Fargo provide you with an in-depth review of all your accounts to see if you are affected.
As a person who worked in the financial industry for many years, I have tried to warn you in previous articles that things like this can happen occasionally. The products developed at these financial institutions don’t always have clear-cut policies and this leads to poor judgment and fraud. If you recall, the housing crisis that we went just through a few years ago had a similar problem dealing with illegal documents. It was proven that faulty mortgage contracts were issued to boost the cash bonuses that was paid out which is a common theme in this case.
In my experience of working in the risk management, this situation appears to be an oversight in the procedures that the officials failed to look at closely. In my opinion, the people responsible for checking on these accounts were ” out to lunch” which allow this bad behavior to occur.
Hence, I’m suggesting that you have the bank send you a listing of all your banking activity dating back to 2011. If you spot any charges or fees that you don’t recognize this is the best time to get it wiped off your records. This is so because the bank has hired thousands of professionals to go over each of these transactions to determine whether it fits the criteria of this violation.
If it’s proven to be one of these transactions, according to the CEO MR. Stump all of these charges will be waived. Additionally, you should also make sure that the bank sends a record to the various credit bureaus informing them to adjust their records accordingly. This step is important because the customers who failed to pay the fees on these illegal accounts could have had their credit records damaged and they were not aware that this has happened to them.
I’m personally very upset about this violation of trust that Wells Fargo made against their customers because I’m a long-time customer myself. It also has made me want to remind you once again that you have to spend time looking over any of your financial records carefully. The people who have one account for years and later find out that they now have six or seven accounts, this should have been an alert that something is wrong. You can’t rely on others to catch something going wrong in your account, that’s your job.
I hope that this overview of the details of this scandal helps you in some way to get your account in order whether it’s at Wells Fargo or at another financial institution. I do know from past experiences that once a problem like this is uncovered ( commission base payment policy ) this may exist at another institution that will come up later.
In providing this information it’s meant to help my family and friends who may be a victim of this violation to do something about correcting this error. If you do have an account at Wells Fargo you should follow-up on this matter right away. Since they were the largest bank in the country ( not after this scandal) and having millions of customers, I’m sure that they will be working all hours through the night to fix their reputation on this problem. I just hope that my friends and family are not affected but if they are, I want them to go after Wells Fargo with everything that they have and don’t hold back on any PUNCHES, because I’m not.