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Wells Fargo

Wells Fargo in trouble again, again, and again

Washington, DC – re-posted from Senator Warren’s office (1/17/19) – A report by the Consumer Financial Protection Bureau (CFPB) prepared in February of 2018, but only recently released through a Freedom of Information Act request (Trump trying to slow down consumer access to information), reveals that the fees charged to college students by Wells Fargo for debit cards and other financial products were more than three times higher than the average charges by other financial institutions. The CFPB examined bank fees at 573 colleges. The students at the 30 colleges with Wells Fargo products paid an average of $46.99 in fees annually, the highest of the banks examined, and more than three times higher than other banks.

Wells Fargo Charged Student Exorbitant Fees.

Wells FargoAccording Senator Elizabeth WarrenWells Fargo has a history of aggressively and sometimes illegally squeezing its customers to boost its profits, and this report illustrates that the bank is deploying similar tactics on America’s college campuses to target vulnerable students.  When granted the privilege of providing financial services to students through colleges, Wells Fargo used this access to charge struggling college students exorbitant fees. These high fees, which are an outlier within the industry, demonstrate conclusively that Wells Fargo does not belong on college campuses.”

Low Income More Likely to Pay Excessive Overdraft Fees

“Worse still, the burden of Wells Fargo’s fees does not hit all students equally,” wrote Senator Warren. “Low-income students are more prone to overdraft on their accounts and to suffer from your bank’s excessive overdraft fees.”

Colleges Put on Notice About Wells Fargo Excessive Fees.

The Senator also sent a letter to the presidents of 31 colleges where Wells Fargo provides financial services to students, making the colleges’ leaders aware of the CFPB findings about Wells Fargo’s excessive fees as they make future decisions about campus-sponsored financial products for their students.

Other Actions Taken by Senator Warren Against Wells Fargo’s Management

Senator Warren has led the charge to hold Wells Fargo senior management accountable since the fake-accounts scandal came to light, as well as pressed to strengthen consumer protections:

  • On June 19, 2017, Senator Warren sent a letter to then-Fed Chair Janet Yellen urging her to remove 12 Wells Fargo board members following the fake accounts scandal.
  • At a Senate Banking Committee hearing on July 13, 2017, Senator Warren again called on Chair Yellen to remove implicated Wells Fargo board members.
  • Later in July 2017, Senator Warren renewed her call for the Fed to remove Wells Fargo board members after it was reported that more than 800,000 Wells Fargo customers were charged for auto insurance they did not need.
  • On August 16, 2017, Senator Warren again urged for the removal of Wells Fargo board members amid new evidence that the bank failed to refund money owed to car loan customers, that it overcharged small businesses for credit card transactions, and that it billed certain mortgage customers for unexpected, optional services.
  • During a March 1, 2018 Senate Banking Committee hearing, Senator Warren urged Fed Chair Jerome Powell to hold a public vote by the Federal Reserve Board on lifting growth restrictions for Wells Fargo instead of delegating it to staff. She also asked for the public release of the third-party review of how Wells Fargo is implementing reforms. Senator Warren followed up in April and again pressed Chair Powell to change course.
  • In a response to Senator Warren on May 10, 2018, Chair Powell reconsidered and announced he would require a Fed Board vote on whether to lift Wells Fargo’s growth restrictions. He also said he would consider releasing as much of the third-party review as possible.
  • In December 2018, the Senator joined Senator Jack Reed (R-R.I.) and signed onto a letter to the Education Department regarding the enforcement of federal rules governing campus bank accounts.

* FRAUD AND DECEIT – BELOW ARE JUST A FEW OF THE CONS WELLS FARGO HAS BEEN INVOLVED IN, THAT WE KNOW OF THUS FAR.

The Wells Fargo Fake Account Scandal: A Timeline – Forbes

On September 8, 2016, Wells Fargo announced that it was paying $185 million in fines to Los Angeles city and federal regulators to settle allegations that its …
Jul 31, 2017 – Analysts are angry over the latest Wells Fargo scandal where hundreds of thousands of customers were required to buy auto insurance they …

The Wells Fargo account fraud scandal is an ongoing controversy brought about by the creation of millions of fraudulent savings and checking accounts on …

2 days ago – Beginning in at least in 2009, Wells Fargo teamed up with a home warranty firm to foist a product on unsuspecting mortgage customers, …
2 days ago – It’s been a whole day since we learned about another example of systematic, widespread fraud by America’s largest bank Wells Fargo (ripping …
Jul 21, 2017 – OSHA orders Wells Fargo to reinstate and pay a whistleblower $577000 in the fake-account scandal.

Wells Fargo, Awash in Scandal, Faces Violations Over Car Insurance …

Aug 7, 2017 – Wells Fargo, the scandal-plagued bank, is facing new regulatory scrutiny for not refunding insurance money owed to people who paid off their …

8 hours ago – One of the world’s largest hedge funds made a huge bet that scandal-plagued Wells Fargo‘s worst days are behind it. Viking Global, a $30 …

How Wells Fargo’s Cutthroat Corporate Culture Allegedly Drove …

But with the major scandal unfolding at Wells Fargo, angry former employees illuminate the alarming pressure that allegedly led local bankers to defraud …

Wells Fargo Opened a Couple Million Fake Accounts – Bloomberg

Really that’s just one principle: You get what you measure, but only exactly what you measure. There’s no guarantee that you’ll get the more …

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Diane L. Drain

Diane L. Drain, bankruptcy attorney, retired law professor, mentor and community spokesperson.

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