Wells Fargo: We apologize, there are 3.5 million fake accounts
Staff Writer |
Wells Fargo & Company announced the completion of its previously announced expanded third-party review of retail banking accounts dating back to the beginning of 2009.
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The original account analysis reviewed 93.5 million current and former customer accounts opened in an approximately four and half year time period – from May 2011 through mid-2015 – and identified approximately 2.1 million potentially unauthorized accounts.
The expanded analysis reviewed more than 165 million retail banking accounts opened over a nearly eight-year period – from January 2009 through September 2016 – and identified a new total of approximately 3.5 million potentially unauthorized consumer and small business accounts.
Combined with a recent class action settlement and ongoing broad customer outreach and complaint resolution, the completion of the analysis further paves the way for making things right for Wells Fargo customers who may have been harmed by unacceptable retail sales practices.
To conduct the review of retail bank accounts, Wells Fargo engaged a third-party firm that developed a data analysis methodology that errs on the side of customers.
The account review analyzed consumer and small business checking, savings, and unsecured credit card and line of credit account data to identify potentially unauthorized accounts.
“We apologize to everyone who was harmed by unacceptable sales practices that occurred in our retail bank,†said Wells Fargo CEO Tim Sloan.
In addition to the refunds resulting from the third-party account review, Wells Fargo has provided more than $3.7 million in refunds and credits to customers for complaints and mediation claims from Sept. 8, 2016, through July 31, 2017.
Customers also may receive compensation under the recent $142 million class-action settlement for claims dating back to 2002.
After plaintiffs’ attorneys’ fees and costs of administration, the class-action settlement will provide reimbursement of fees not already paid and compensation for increased borrowing costs due to credit-score impact associated with a potentially unauthorized account.
Remaining funds will be distributed to the participants in the class on a per account basis. ■