September 2020 by Frank Y.
So you'll know more about the reputation of Wells Fargo, in general, here are some of the scandals they have allegedly engaged in, as per the mainstream media, since March of 2019 (Source: Ethan Wolff-Mann, Yahoo Finance). These include 1) opening 3.5 million fake deposit accounts and more than 500,000 fake credit cards all in bank customers' names and without their permission costing customers $142 million, 2) the Department of Justice slapped Wells Fargo for improperly repossessing the cars of members of the military by not limiting interest rates to 6% required by law, failing to tell courts the borrowers were active-duty when it asked and failing to obtain court papers prior to repossessing cars (the OCC charged $20 million in fines for violating the rights of veterans), 3) failed a "living will" test or requirement that big banks must show how they would unwind in the event of a bankruptcy, 4) flunked the community lending test (particularly to lower income communities), 5) overcharged small business retailers (mom and pop shops) hitting them with massive early termination fees and a deceptive 63-page fine print agreement that hid terms from small business retailers (CNN Money stated that 'God would have had a hard time escaping the contract), 6) charged customers for auto insurance policies they did not need resulting in some consumers losing their cars, 7) engaged in illegal student loan servicing practices, 8) charged consumers inappropriate overdraft fees, 9) overcharged veterans for refinance loans, and 10) fraudulently sold complex financial products to retail investors. Recently Congresswoman Maxine Watters', House Financial Services Committee chairwoman, released a majority staff report on Wells Fargo including twelve consent orders issued in response to the company's widespread consumer abuses and compliance breakdowns. Among the disturbing findings uncovered in the report is that the Office of the Controller of the Currency is aware of dozens of abuses by Wells Fargo where the number of bank accounts requiring remediation is in excess of 50,000 or the amount of harm exceeding 10 million. Among complaints against Wells Fargo from its account holders and depositors, in the last 3 years, are deceptive advertising and sales, deceptive billing and collections, delivery issues, deceptive guarantees and warranties, and problems with a product or service. Additionally Chairman Watters' committee discovered discrimination against blacks and Latino borrowers [Securities and Exchange Commission), levied fines for leading investors astray or altering business information without client knowledge (Securities fraud lawsuits, 80 million settlement), and required refunds concerning add-ons like pet insurance and legal services to bank customers . Additionally, private bank wealth management issues including Wells Fargo's apparent or seemingly egregious role in the 2008 housing bubble including thousands of houses foreclosed on due to supposed computer glitches. Wells Fargo advisors were sanctioned by the SEC for fee disclosure practices including mortgage locks and auto-loan problems. Here is a recent news article regarding Wells Fargo's seemingly illicit conduct towards account holders and others: Two Senators Demand Answers from Wells Fargo after NBC News Report. July 30, 2020, 10:01 AM EDT By Gretchen Morgenson, NBC NewsCiting a recent investigation by NBC News, two U.S. senators have asked the chief executive of Wells Fargo to answer extensive questions about the bank's practice of pausing mortgage payments for borrowers without their consent under a federal program designed to help homeowners financially hurt by COVID-19. The senators, Elizabeth Warren of Massachusetts and Brian Schatz of Hawaii, both Democrats and members of the Senate Banking Committee, wrote a letter on July 29 requesting information and documents about Wells Fargo's policy of placing customers in so-called forbearance programs they did not request. The conduct can harm borrowers' cr