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Imagine racking up bank fees and charges on a new account you never signed up for. And then discovering that the bank shifted funds from your existing account into this new account without your knowledge or permission.
This is what happened to hundreds of thousands of Wells Fargo customers and why the Consumer Financial Protection Bureau (CFPB) has fined the bank with a historic $100 million fine. This is the largest penalty since CFPB was founded in 2011.
Wells Fargo employees motivated by sales targets and compensation incentives illegally enrolled consumers in more than 1.5 million deposit accounts, credit and debit cards and online banking without their knowledge or consent. These dummy accounts incurred more than $400,000 in interest charges, overdraft-protection and other fees.
Under the settlement, Well Fargo must pay full restitution to all victims along with other penalties, and also change its sales practices moving forward.
With all CFPB does to hold the financial industry accountable and protect consumers, some in Congress still want to cut this critical agency’s funding in half. NTEU continues to vehemently oppose these efforts.
Read CFPB’s press release.