Wells Fargo cross-selling scandal

Uncommon card · No. 153180

The Wells Fargo cross-selling scandal was caused by the creation of millions of fraudulent savings and checking accounts on behalf of Wells Fargo clients without their consent or knowledge. The creation of these accounts was attributable to aggressive internal sales goals at Wells Fargo. News of the fraud became widely known in late 2016 after various regulatory bodies, including the Consumer Financial Protection Bureau (CFPB), fined the company a combined US$185 million as a result of the illegal activity. The company faces additional civil and criminal suits reaching an estimated $2.7 billion by the end of 2018. The creation of these unauthorized accounts continued to have legal, financial, and reputational ramifications for Wells Fargo and former bank executives for almost a decade after the initial reporting. Wells Fargo clients began to notice the fraud after being charged unanticipated fees and receiving unexpected credit or debit cards or lines of credit. Initial reports blamed individual...

Read on Wikipedia · Image Wells Fargo, Public domain