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Wells Fargo Charged with Opening Unauthorized Accounts in Customers' Names

Published by: Andy on 5th May 2015 | View all blogs by Andy

Wells Fargo Charged with Opening Unauthorized Accounts in Customers' Names

A complaint was filed Monday in the Superior Court of California accusing Wells Fargo of opening bank accounts and credit cards in their customers' names without their knowledge. The Civil suit seeks a $2,500 fine for each account opened plus additional damages. The number of unauthorized accounts has not yet been disclosed. A spokesman for the banking giant said it will “vigorously defend itself”, but declined to confirm or deny whether unauthorized accounts had been opened. According to the complaint, bank employees were pressured to meet unrealistic sales goals and quotas, prompting the fraudulent activity. Employees allegedly opened the accounts to meet the quotas and even transferred money from authorized accounts to pay fees on the unauthorized ones. In addition to fines, prosecutors also wants all money taken from customers to cover late fees returned.

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