Locals react to Wells Fargo scam

Local News

Some local Wells Fargo customers  say they not surprised at the recently revealed scam that is costing the company millions. 

Wells Fargo has been order to pay 185 million dollars to the federal government. Company eemployees created sham bank accounts and over 500,000 credit card accounts in real  customers names and without their permission.

 “That’s crazy. you can’t trust nobody these days,” says Wells Fargo customer Al Holder. 

More than 5300 Wells Fargo employees were involved.  The employee hid their deeds from customer by making up phony email addresses and pin numbers.

Local customer, Lydia Barlow, say it’s no shocker. 

“There is so much going in this day and time it really me doesn’t surprise me about any bank,” said Barlow.

“I think that’s something we are seeing more and more with the larger banks,” said Peter Gibbon, a customer.

The scam started in 2011.

According to the Consumer Financial Protection Bureau, employees did it to reach sales goals and to receive bonuses.

Customer, Peter Gibbon says he wants to see more than just fines.

“It wasn’t over 5000 people who had the same idea at the same time…there needs to be accountability for whoever is coming up with creative ways to make money like this,” said Gibbon.

The employees involved have been fired and Wells Fargo will refund 5 million dollars to customers. 

In a news release, the bank says, “Wells Fargo is committed to customers’ interest first 100 percent of the time and we regret and take responsibility for any instances where customers may have received a product they did not request”.

Customers say they aren’t happy with Wells Fargo as a whole, but it will not affect how they bank locally. 

“It doesn’t make me happy to hear about Wells Fargo… but I’m still gonna come,” said Barlow. 

“The people I come into contact with on a regular basis at my bank are great people. They’re people just like us,  just trying to make a living,” said Gibbon. 

 Wells Fargo was unable to provide the number of Virginia customers effected by the phony accounts.


Wells Fargo’s News Release:

SAN FRANCISCO, September 8, 2016 – Wells Fargo Bank, N.A., a subsidiary of Wells Fargo & Company (NYSE:WFC), reached agreements with the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency, and the Office of the Los Angeles City Attorney, regarding allegations that some of its retail customers received products and services they did not request.

The amount of the settlements, which Wells Fargo had fully accrued for at June 30, 2016, totaled $185 million, plus $5 million in customer remediation.

The company issued the following statement related to today’s news:

“Wells Fargo reached these agreements consistent with our commitment to customers and in the interest of putting this matter behind us. Wells Fargo is committed to putting our customers’ interests first 100 percent of the time, and we regret and take responsibility for any instances where customers may have received a product that they did not request.

Our commitment to addressing the concerns covered by these agreements has included:

 -An extensive review by a third party consulting firm going back into 2011, which we completed prior to these settlements. The review included consumer and small business retail banking deposit accounts and unsecured credit cards opened during the period reviewed.

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

News tips

Do you have a news tip or breaking news to share with WFXR?  Submit your tip here.

Latest News

More News

News Tip Form