UPDATE: Yes, the Wheels are Falling Off Wells Fargo Fraud Much Worse than Anticipated, Like 1.4 Million Worse
- On September 4, 2017
Wells Fargo raised its estimate for how many bogus accounts employees may have created. An outside review into more than 165 million deposit and credit-card accounts found an additional 1.4 million that were potentially unauthorized, bringing the total to about 3.5 million and revealing the fraud was prevalent for twice as many years as the original review. The expanded review also uncovered about 528,000 potentially unauthorized online bill-pay enrollments. The new figure is a massive increase from its initial 2.1 million account fraud estimates.
We believe Wells Fargo may be required to go even further back in years which will continue the ongoing reminder to the public that Wells Fargo’s fraud is not only massive, but has been going on for a decade or more.
In addition to 3.5 million fake accounts…
- In July, a new fraud was revealed over insurance for auto loans where Wells Fargo bank forced more than 800,000 customers to buy unnecessary auto insurance that sent about 250,000 of them into delinquency.
- Accused of malfeasance related to mortgage lending and consumer-overdraft fees.
- Faces discrimination complaints and fraud allegations related to shareholder losses.
- Accused by customers of making unauthorized changes to mortgages, even extending them by decades.
- Faces 26 suits seeking class-action status in federal court that claim the bank manipulated its overdraft fees system to bolster revenue.
- A group of Latino plaintiffs and a civil rights group allege Wells Fargo’s credit policies are discriminatory. A federal judge said the bank must face the claims, filed under a 150-year-old civil-rights law.
- Other lawsuits, filed as class actions in federal court in California and New York, allege that the bank forced more than 800,000 customers to buy unnecessary auto insurance that sent about 250,000 of them into delinquency.
- Wells Fargo lost (to JPMorgan Chase & Co.) its status as the world’s most valuable bank about a week after the fake-accounts scandal came to light in September 2016.
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