Holy shit! How does something like this happen. It’s been going on since 2011!
WTF? Were employees sitting around in the lunch room telling each other how to rake in a few extra bucks? No one talked? No whistle blowers? I have to wonder how high up this went. Are these 5,300 employees just scapegoats?
Holy crap, how can 5,300 employees be in on it, and nobody ever contacted the papers or anything?
It seems like as soon as a customer complained about an overdraft fee, this would be exposed, no?
Is now a good time to sell Wells Fargo stock short?
Couple years ago, Wells Fargo was hit with a class action suit for allowing homeowners insurance policies to lapse rather than paying out of escrow, then opening new policies with some other company chosen by WF. All without the homeowners’ permission.
You’d be surprised. Someone at my work found a glitch in the system that allowed you to see the salaries of anyone that work there. Word of the glitch got around, and by the time it was over with, nearly 200 people got fired for utilizing said glitch.
I think that’s probably what happened with WF. Some dolt figured out how to game the system, word gets around, and before you know it, you got 5300 people acting like idiots.
It spreads like a virus.
Fired? Hell! When are they going to be arrested?
That could be next. They’d need a stadium to house them all!
I haven’t gotten a chance to read the article, but I think they create the accounts because they’re under pressure. This isn’t new. The LA County DA was after them a few years ago for essentially the same thing.
Wells Fargo: the bank which will not give anyone change unless they’re an account holder. Or open one.
Why would this benefit employees, other than their supervisor telling them to or else. Sounds like all the extra money was going to WF.
My son and I have a history of working “temps”, from drudge to consultant, over years. And Wells Fargo was the most common employer. We got to the point were Wells Fargo was our “in-joke” for astonishing incompetence.
One time, I reported for some computer shit and, true to form, nobody had gotten a 'puter, LAN, desk, you know the drill. So, they asked me to go work in the mail room for the day. $30/hr, sure, no prob. I’m here on a raid to begin with, what do I care?
So, they got an extra guy don’t know what to do with, so they put me to opening “backlog”. Being letters sent to WF that nobody had gotten around to opening! As the Wolfman said, if I’m lyin’, I’m dyin’. Many for days, weeks, some for months!
Letters from really old folks, can’t figure out why they get letters about their mortgages, saying they’re in trouble. And checks! Checks uncashed, unopened, still in the envelope from months previous! I swear, I am not making this up! And their terrified customers not understanding WTF!!
Banking used to be boring and stupid. Now, not so boring. Lizzie Warren is spot on, its *supposed *to be boring, reliable is boring! Don’t want boring, take a career in bomb disposal!
Bonuses based on revenue generated, or employee evaluations.
I still don’t get how this scam worked even after reading the article closely. If they created millions of fake accounts, wouldn’t customer service get flooded with complaints and wouldn’t there be countless identity theft investigations by outside parties (a lot of the accounts were credit cards so that seems doubly risky)? I know that some people don’t pay attention to their accounts but millions? And where did the money go?
I’m okay with this. WF shouldn’t be expected to provide a free service to any schmo that happens to wonder by needing change. Also, such folks are holding up the line for actual customers.
Such folks still hold up the line for actual customers due to not being aware of the account holder requirement until reaching a teller, who then tries to sell such folks on opening an account.
Then it’s taking too long for the tellers to make a simple transaction.
Are there really that many people who need change anymore?
Man, what a straight line. I do enough politicking, I’ll just slide that one.
In other news - Burger King refuses to give beef patties to non-customers, makes them buy a burger!
They weren’t using the accounts they created to steal the money in those accounts. They were just doing it to create the account churn that lets them hit their sales quotas and get their bonuses/commissions.
A lot of customers have various checking/savings/credit card/investment accounts with the same bank, so I imagine the most common scenario was someone with just a checking account having a savings account opened up for them with the minimum amount required to do so being taken from their checking account. Customer doesn’t really lose money, and if the savings is tied to the checking with overdraft protection, their effective checking balance would remain the same. And the sly WF employee who did this meets his quota and/or gets his bonus. Same kind of deal with opening a new credit card account… might go unnoticed, until the employee is careless and signs them up for a card that requires a minimum bank account balance to avoid fees.
Not exactly the same thing. Historically, if you didn’t have a bank account, you could cash a check at a branch of the bank of the account from which the check is drawn. The bank would still serving a customer; the customer in this case is the person who wrote the check, not the person cashing it.
The flip side to that coin (:p) is that by refusing to do something so easy, they may be turning away future customers.
Think of it this way: if you are in need of a bank’s services, which one are you likely to go to, assuming everything else is equal? The one with the friendly teller who happily got you change for your $100 bill the day you needed it, or the one with the teller who told you to pound sand because you weren’t an account holder?