Wells Fargo now says 3.5 million impacted by sales scandal

Wells Fargo now says 3.5 million impacted by sales scandal

Wells Fargo now says 3.5 million impacted by sales scandal

The bank Wells Fargo is now saying that more customers were affected by its fake account scandal.

Wells Fargo said Tuesday it opened nearly twice as many potentially unauthorized banking and credit card accounts than was originally revealed, according to an independent review of the bank's sales practices.

The first scan for fake Wells Fargo accounts looked at 93.5 million accounts opened from May 2011 through mid-2015.

The bank is providing an additional $3.7 million in customer refunds based on the expanded analysis.

In addition, San Francisco-based Wells admitted that 528,000 customers were likely signed up for online bill payment without authorization.

Of the fake bank accounts now discovered, around 190,000 have incurred fees and charges for the bank's customers.

After Wells Fargo acknowledged the fake accounts a year ago, evidence quickly appeared that the sales practices problems dated back even further.

"Through this expanded review, as well as the class action settlement, free mediation services, and ongoing outreach and complaint resolution, we've cast a wide net to reach customers and address their remaining concerns", Sloan said. About shares traded. Wells Fargo & Co (NYSE:WFC) has risen 9.67% since August 31, 2016 and is uptrending.

Wells Fargo said it was earmarking an additional $2.8 million to pay back customers harmed by the scheme.

In terms of remediation, Wells Fargo says in the coming weeks it will be taking steps to compensate its retail and small business customers.

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"We apologize to everyone who was harmed by unacceptable sales practices that occurred in our retail bank", Wells Fargo chief executive officer Timothy Sloan said Thursday.

Wells Fargo entered into an agreement to expand the review it had after lawmakers in Washington lashed out at the company after former CEO John Stumpf's testimony in September of previous year about the sales practices of the bank. The unauthorized accounts affect well over a million additional consumers and businesses. He said the accounts were nonetheless included in the totals because they were not being actively used.

So far, Wells Fargo hasn't seen the upside to its announcement.

Democrats led by Rep. Maxine Waters of California earlier this month called for a House Financial Services Committee hearing about a separate scandal at Wells Fargo involving unwanted vehicle insurance imposed on auto-loan customers.

Several other institutional investors have also added to or reduced their stakes in WFC. Elizabeth Warren (D-Mass.) and other critics have called for.

Cramer thinks the next logical move would be for the U.S. Congress to summon all of Wells Fargo's board members.

Angelo Gordon & Company Lp increased Proofpoint Inc (PFPT) stake by 1269.23% reported in 2016Q4 SEC filing.

Earlier in August, Democrats led by California Maxine Waters called for a hearing in the House Financial Services Committee about another scandal at the bank that involved vehicle insurance that was unwanted being imposed on customers who had auto loans.

The troubles surrounding Wells Fargo have become a proxy battle on Capitol Hill over the future of the Consumer Financial Protection Bureau, the watchdog agency established after the 2008 financial crisis. Ameritas Invest Prns Incorporated reported 0.3% of its portfolio in Wells Fargo & Co (NYSE:WFC).

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