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Wells Fargo fires 5,300 employees after $185 million fine

Staff Writer |
After Wells Fargo has agreed to pay fines of $185 million and announced settlements with the Consumer Financial Protection Bureau (CFPB), the company fired 5,300 employees related to the scheme.

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According to the bank’s own analysis, employees opened roughly 1.5 million deposit accounts that may not have been authorized by consumers.

Employees then transferred funds from consumers’ authorized accounts to temporarily fund the new, unauthorized accounts.

This widespread practice gave the employees credit for opening the new accounts, allowing them to earn additional compensation and to meet the bank’s sales goals.

Consumers, in turn, were sometimes harmed because the bank charged them for insufficient funds or overdraft fees because the money was not in their original accounts.

According to the bank’s own analysis, Wells Fargo employees applied for roughly 565,000 credit card accounts that may not have been authorized by consumers.

On those unauthorized credit cards, many consumers incurred annual fees, as well as associated finance or interest charges and other fees.

Wells Fargo employees requested and issued debit cards without consumers’ knowledge or consent, going so far as to create PINs without telling consumers.

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