Wells Fargo Ends Sales Goals in Wake of Fraud

Savage Villoch Law, PLLC — Mon, 19 Sep 2016 09:00:32 GMT

This is an update to a previously posted article – “Wells Fargo Pays Out $190 in Financial Fraud Claim”. Read the full story here. In the wake of the massive fraud scandal stemming from a sales incentives initiative, Wells Fargo as announced that it is ending the company-wide sales product goals. The banking giant, ordered to pay $190 million in damages and fines earlier this month, stated that as of Jan. 1, 2017 it would eliminate product sales goals. The decision is an effort by the bank to recoup customer faith and public standing. The widespread fraud case ended with the termination of 5,300 employees who had engaged in fraudulent activities in order to meet issued sales goals and earn incentives. Employees created false, fee-generating accounts for unwitting customers. They created false pins and authorized purchases and lines of credit that had not been requested nor authorized. Wells Fargo, one of the nation’s largest banks, has been struggling to regain stock figures–which have been on a steady decline since the discovery. The investigation into the fraudulent practices initiated by regional employees resulted in the Consumer Financial Protection Bureau (CFPB) issuing the largest fine it has every levied since the bureau’s inception 5 years ago. In addition to the $185 million in penalties, the bank has also set aside a provisional $5 million to account for financial damages to consumers and clients. Though the CFPB has not reported other banks practicing similar fraudulent actions “on any kind of systematic basis at any other bank”, large banks, like Wells Fargo, are prone to turning a blind eye to consumer fraud and financial abuse on the public. Do not allow yourself to be victimized by big banking. Call Savage Villoch Law, PLLC today for a consultation and we will determine if you have been affected by financial fraud and what you are owed.

Wells Fargo Pays Out $190 Million in Financial Fraud Claim

Savage Villoch Law, PLLC — Mon, 12 Sep 2016 16:56:01 GMT

Last week, banking giant, Wells Fargo, agreed to a settlement with federal and state prosecutors in a California court to pay $185 million in penalties and $5 million in damages to affected customers following a wide-spread financial fraud scandal. In May of last year, it was alleged that Wells Fargo had assigned fee-generating savings and credit accounts to customers with out prior knowledge or consent. According to a report from the Consumer Financial Protection Bureau (CFPB), this led to the creation of more than 2 million potentially unauthorized deposit and credit accounts. The full amount of the $100 million fine charged by the CFPB will constitute the largest such fine the agency has ever imposed since its inception in the wake of the 2008 financial crisis. A $35 million penalty will be paid to the Office of the Comptroller of Currency and $50 million in damages will be paid to the city and county of Los Angeles. The settlement also provides an additional $5 million in customer restitution. Unlike other fraud cases–in which a small number of high-ranking executives are responsible–this case constitutes widespread fraud and corruption on a regional level. In response to company-wide sales projections and increased incentives, roughly 5,300 employees across the nation engaged in creating a variety of fee-generating accounts for customers that had not requested them. Though Wells Fargo has since terminated these employees after investigating the CFPB allegations and has pledged to fulfill the settlement, it remains to be a case of widespread financial fraud against consumers. The effects of this case are far-reaching as Wells Fargo is one of the nation’s largest banks, with roughly 70 million customers in the U.S. The banking giant has many clients in the Tampa Bay area and across Florida that may have been adversely affected by this case. If you have been notified about a civil restitution case or believe you have been affected, Call Savage Villoch, PLLC today and we will find out exactly how you were affected and what you are owed.

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Wells Fargo Ends Sales Goals in Wake of Fraud

Wells Fargo Pays Out $190 Million in Financial Fraud Claim