Wells Fargo Fraudulent Accounts Scandal: Who is to Blame and How to Prevent Future Problems?

Wells Fargo Fraudulent Accounts Scandal: Who is to Blame and How to Prevent Future Problems?

How many bank accounts do you have? If you are banking with Wells Fargo you may not know the correct answer to this question. Why? On September 8, 2016 Consumer Financial Protection Bureau (CFPB) filed a Consent Order in the matter of Wells Fargo. According to the CFPB filing, from January 1, 2011 to September 8, 2016 Wells Fargo employees opened approximately 1,534,280 deposit accounts "that may not have been authorized and that may have been funded through simulated funding, or transferring funds from consumers’ existing accounts without their knowledge or consent. That analysis determined that roughly 85,000 of those accounts incurred about $2 million in fees (...)"  At the same time,...