Wells Fargo Ends Sales Goals in Wake of Fraud

This is an update to a previously posted article – “Wells Fargo Pays Out $190 in Financial Fraud Claim”. Read the full story here. In the wake of the massive fraud scandal stemming from a sales incentives initiative, Wells Fargo as announced that it is ending the company-wide sales product goals. The banking giant, ordered to pay $190 million in damages and fines earlier this month, stated that as of Jan. 1, 2017 it would eliminate product sales goals. The decision is an effort by the bank to recoup customer faith and public standing. The widespread fraud case ended with the termination of 5,300 employees who had engaged in fraudulent activities in order to meet issued sales goals and earn incentives. Employees created false, fee-generating accounts for unwitting customers. They created false pins and authorized purchases and lines of credit that had not been requested nor authorized. Wells Fargo, one of the nation’s largest banks, has been struggling to regain stock figures–which have been on a steady decline since the discovery. The investigation into the fraudulent practices initiated by regional employees resulted in the Consumer Financial Protection Bureau (CFPB) issuing the largest fine it has every levied since the bureau’s inception 5 years ago. In addition to the $185 million in penalties, the bank has also set aside a provisional $5 million to account for financial damages to consumers and clients. Though the CFPB has not reported other banks practicing similar fraudulent actions “on any kind of systematic basis at any other bank”, large banks, like Wells Fargo, are prone to turning a blind eye to consumer fraud and financial abuse on the public. Do not allow yourself to be victimized by big banking. Call Savage Villoch Law, PLLC today for a consultation and we will determine if you have been affected by financial fraud and what you are owed.