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IPFS News Link • Central Banks/Banking

This banking scandal is awful… even for Wells Fargo

• Sovereign Man - Simon Black

I guess none of this should surprise me anymore.

Our old friends at Wells Fargo are involved in yet another banking scandal. And this one is really bad… people wrongfully lost their homes and ended up on the street.

But before I get into the details of this particularly atrocious mishap, let's have a quick recap of Wells' "greatest hits."

Back in April, Wells was hit with a $1 billion fine for selling 570,000 clients auto insurance they didn't need and also charging mortgage borrowers erroneous fees.

By the bank's own estimates, as many as 20,000 of those clients may have had their cars repossessed as a result of their inability to pay for the insurance Wells Fargo illegally stuck them with.

On the topic of repossessing vehicles, last November, the bank came under fire for illegally repossessing vehicles owned by members of the military.

Then in October, Wells Fargo got grilled by federal regulators after recommending investment products that were "highly likely to lose value." The bank also pushed tons of customers into higher-fee retirement accounts that were bad for customers but more lucrative for the bank.

That same month, the bank fessed up to "erroneously" charging late fees to more than 100,000 borrowers, even though the delays were the bank's fault.

In 2016, employees at some of Wells Fargo's California branches got busted for selling sensitive customer info, like Social Security numbers, to identity thieves.

And in late 2016 and throughout 2017, Wells Fargo had its notorious "fake account" scandal, where its employees opened extra accounts for millions of customers so they could hit their sales goals and earn a bonus.

And then there's the time Wells Fargo froze my account for sending a simple wire transfer.

I don't know what else to say about Wells Fargo (and basically every other big bank) anymore… other than I'm outraged with their behavior.

Consider Wells Fargo's latest scandal…

This week, the bank said a "computer glitch" caused 545 of its customers to lose their homes.

The "glitch," according to papers the bank filed with the Securities and Exchange Commission, caused the bank to incorrectly deny 870 loan modifications (around 60% of which went into foreclosure).

Basically, people asked the bank to change their mortgage to make it more affordable, and requests that should have been approved weren't… with the process taking months before the borrower got the final "no."

Seriously?


CrytoHippie