Doug writes: “Acting in most cases without any authority from the account holders, Wells Fargo workers opened an estimated 1.5 million deposit accounts and applied for roughly 565,000 credit card accounts, according to the Consumer Financial Protection Bureau (CFPB). Once the accounts were opened the employees transferred money to temporarily fund the new accounts which allowed them to meet sales goals and earn extra compensation.”
Wow. If you knew the pressure bank employees are under (draconian pressure really), you may not be surprised. To meet sales goals and garner incentives, staffers created accounts and transferred funds from real accounts to fill the fakes. This, over a five-year period. Over 5,000 people were fired, according to CNNMoney.
“In many cases bank customers were charged fines for insufficient funds and overdraft fees on accounts that they did not know existed in their names. The unauthorized credit cards also cost customers through finance and interest charges,” Doug reports.
Remember this article when you read my novel, High-Rise Crew: Financial Insiders, next year, because this is just the start.