If you needed just one more reason to not trust Well's Fargo

Page: 1, 2, 3
Online now: Google [Bot]
Post Reply
maurvir Steamed meat popsicle
User avatar
http://money.cnn.com/2016/09/08/investi ... index.html

Quote:
Everyone hates paying bank fees. But imagine paying fees on a ghost account you didn't even sign up for.That's exactly what happened to Wells Fargo customers nationwide.

On Thursday, federal regulators said Wells Fargo (WFC) employees secretly created millions of unauthorized bank and credit card accounts -- without their customers knowing it -- since 2011.

The phony accounts earned the bank unwarranted fees and allowed Wells Fargo employees to boost their sales figures and make more money.

"Wells Fargo employees secretly opened unauthorized accounts to hit sales targets and receive bonuses," Richard Cordray, director of the Consumer Financial Protection Bureau, said in a statement.

Wells Fargo confirmed to CNNMoney that it had fired 5,300 employees over the last few years related to the shady behavior. Employees went so far as to create phony PIN numbers and fake email addresses to enroll customers in online banking services, the CFPB said.


Naturally, note that the perpetrators were merely fired. Not criminal prosecuted. :goth:
dv
User avatar
So are they going to refund all those fees?
maurvir Steamed meat popsicle
User avatar
Quote:
Wells Fargo is being slapped with the largest penalty since the CFPB was founded in 2011. The bank agreed to pay $185 million in fines, along with $5 million to refund customers.


I'm assuming that's first come, first served. If you got screwed by them, you might want to get on the stick, because I'm pretty sure they screwed people out of a lot more than $5M.
DukeofNuke FREE RADICAL
User avatar
maurvir posted:
http://money.cnn.com/2016/09/08/investi ... index.html

Quote:
Everyone hates paying bank fees. But imagine paying fees on a ghost account you didn't even sign up for.That's exactly what happened to Wells Fargo customers nationwide.

On Thursday, federal regulators said Wells Fargo (WFC) employees secretly created millions of unauthorized bank and credit card accounts -- without their customers knowing it -- since 2011.

The phony accounts earned the bank unwarranted fees and allowed Wells Fargo employees to boost their sales figures and make more money.

"Wells Fargo employees secretly opened unauthorized accounts to hit sales targets and receive bonuses," Richard Cordray, director of the Consumer Financial Protection Bureau, said in a statement.

Wells Fargo confirmed to CNNMoney that it had fired 5,300 employees over the last few years related to the shady behavior. Employees went so far as to create phony PIN numbers and fake email addresses to enroll customers in online banking services, the CFPB said.


Naturally, note that the perpetrators were merely fired. Not criminal prosecuted. :goth:

As usual, it's the front-line clerk or CSR that takes the punishment for doing what (I would bet) they were being told to do by their supervisors, who were passing down orders from their managers, who were working the plan of their VP who got his orders from the Board who ...
justine Elitist Beer Lover
User avatar
The funny thing is, this isn't news. This came out like a year or 2 ago. Wells Fargo is just now taking action.
maurvir Steamed meat popsicle
User avatar
justine posted:
The funny thing is, this isn't news. This came out like a year or 2 ago. Wells Fargo is just now taking action.


The "news" is that they got a pittance of a fine, fired some people, and no one was criminally prosecuted. Which is pretty much par for the course, despite the financial meltdown.
DukeofNuke FREE RADICAL
User avatar
Another reason to vote the Sanders/Warren ticket.
Pithecanthropus Roast Master
User avatar
This is why I bank locally.
juice Inadvertently correct
User avatar
Pithecanthropus posted:
This is why I bank locally.

I banked locally until my local bank was bought by Wells Fargo. :goth:
justine Elitist Beer Lover
User avatar
maurvir posted:
justine posted:
The funny thing is, this isn't news. This came out like a year or 2 ago. Wells Fargo is just now taking action.


The "news" is that they got a pittance of a fine, fired some people, and no one was criminally prosecuted. Which is pretty much par for the course, despite the financial meltdown.

Well, my point was more that it's taken them this long to take action.
Orion Mad Cow
User avatar
Can't trust Synchrony Bank either. I had a Lowe's card with them that we got for the 0% financing for the remodeling we did at my GF's house. We were always current with payments and were paying in extra to be sure it was paid before the year deadline came up. Our local bank is merging with another local bank and somehow two of the automatic payments got kicked back and didn't go through two months in a row. I watch that stuff and made a manual payment online immediately and got it taken care of. Got a letter in the mail that due to "a number of declined payments" they closed my account. I called in and asked why and they said that there were two missed payments. I told them to check their records and they said "oops!" and that the payments had been made but that they couldn't reopen my account after it had been closed but that they would gladly open a new account for me. F that. I'm paying the balance off (they agreed to let me keep all the financing terms the same because of their error) and I'll let it stay closed. Now I have to keep an eye on my credit so they don't hose that too. :mad:
Recently retired Wells Fargo exec who oversaw scandal will not have her $125 M retirement bonus taken back.

As justine pointed out: this story began about 2 years ago, but somehow this exec walked away with $125 M bonus which was granted to her at least partially because of the "success" of this employee-incentive program.
maurvir Steamed meat popsicle
User avatar
DEyncourt posted:
Recently retired Wells Fargo exec who oversaw scandal will not have her $125 M retirement bonus taken back.

As justine pointed out: this story began about 2 years ago, but somehow this exec walked away with $125 M bonus which was granted to her at least partially because of the "success" of this employee-incentive program.


The point was made in that article that Tolsted was a high-level exec who knows where all the skeletons are buried. Even with just her salary, she could put up a very embarassing lawsuit, and Wells Fargo knows it. Letting her keep the $125M is essentially hush money, and for Wells, not that big a deal. Remember, the actual fine they paid was roughly equivalent to a day's revenue, and Tolsted's bonus is in the form of stock, much of which won't vest for a while anyway. The cost to the bank is negligible compared to what a massive, public lawsuit could do to investor confidence.

Which is why if you are going to rob a bank, or its customers, do so from the C-suites.
DukeofNuke FREE RADICAL
User avatar
Quote:
Wells Fargo CEO says bad employees were behind scandal over unsolicited accounts
“I wish it would be zero but if they’re not going to do the thing that we ask them to do -- put customers first, honor our vision and values -- I don’t want them here,” he said. “I really don’t.”
http://www.marketwatch.com/story/wells- ... 2016-09-13


5300 bad employees ? Did all this human waste without any coaching ?
user Stupid cockwomble
User avatar
Other companies which abused salesman-incentive programs like Wells Fargo.

There is one cited case--Southwest Airlines--which got it right.
juice Inadvertently correct
User avatar
DukeofNuke posted:
Quote:
Wells Fargo CEO says bad employees were behind scandal over unsolicited accounts
“I wish it would be zero but if they’re not going to do the thing that we ask them to do -- put customers first, honor our vision and values -- I don’t want them here,” he said. “I really don’t.”
http://www.marketwatch.com/story/wells- ... 2016-09-13


5300 bad employees ? Did all this human waste without any coaching ?

Is anyone else's blatherskite detector going nuts?

I might buy this line of thinking if it were an isolated instance. Because their employees did these things in this widespread fashion it is because the company culture and compensation model encouraged it.

Note to self: if this CEO comes to work for your company, RUN!
DukeofNuke FREE RADICAL
User avatar
Quote:
Is anyone else's blatherskite detector going nuts?



This chick,
Image
http://www.kmbc.com/money/elizabeth-war ... 0/41648722

Quote:
"Come on...this went on for years and they didn't smell anything in the air about fake accounts?" she said.

justine Elitist Beer Lover
User avatar
This is reminiscent of what Jiffy Lube was doing. They were caught on video scamming customers across the bay area. The company responded by firing managers when it was clearly what the company wanted them to do.
maurvir Steamed meat popsicle
User avatar
justine posted:
This is reminiscent of what Jiffy Lube was doing. They were caught on video scamming customers across the bay area. The company responded by firing managers when it was clearly what the company wanted them to do.


Most of those quick oil change places do that crap. Some even bother to do the work, whether it was necessary or not, but a lot don't.

It's one reason why I take my cars to the dealer. Sure, it's $45, but I'm usually pretty confident that they aren't screwing me over since I've been doing business with them for years. Maybe it's not universal, but the only reputation issue I've heard about the local Buick/Cadillac place is that they tend to be slower than Christmas at times.
Metacell Chocolate Brahma
User avatar
This is why I think murder should be legal for poor people...just so long as they murder rich people. Proper incentivization.
justine Elitist Beer Lover
User avatar
maurvir posted:
justine posted:
This is reminiscent of what Jiffy Lube was doing. They were caught on video scamming customers across the bay area. The company responded by firing managers when it was clearly what the company wanted them to do.


Most of those quick oil change places do that crap. Some even bother to do the work, whether it was necessary or not, but a lot don't.

It's one reason why I take my cars to the dealer. Sure, it's $45, but I'm usually pretty confident that they aren't screwing me over since I've been doing business with them for years. Maybe it's not universal, but the only reputation issue I've heard about the local Buick/Cadillac place is that they tend to be slower than Christmas at times.

Yeah, mine gets everything done at the dealer, too.
dv
User avatar
I have an independent mechanic I trust. He typically quotes me half what the dealer wants.
'Wells Fargo CEO’s Teflon Don Act Backfires at Senate Hearing; “I Take Full Responsibility” Means Anything But'.

Image

Quote:
Stumpf conned the Senators and regulators about his credit score remedy, which is not about helping customers, but more damage control by the bank. Stumpf was pressed repeatedly on how he’d repair customer credit scores. And the correct answer isn’t hard: tell the credit agencies for each and every one of the over 500,000 credit cards that the credit reports should never have been pulled on them and that any late charges were the bank’s fault.

But that isn’t what Wells Fargo is planning to do. Stumpf instead said the bank will go through the far more labor-intensive effort of calling each and every customer! Now why would the bank do that?

To sell them again!

justine Elitist Beer Lover
User avatar
I read an article today that said a lot of whistleblowers were fired not long after this was reported via their whistleblower hotline. Long before this ever came out.
dv
User avatar
Quote:
Dans ce pays-ci, il est bon de tuer de temps en temps un banquier pour encourager les autres.

maurvir Steamed meat popsicle
User avatar
justine posted:
I read an article today that said a lot of whistleblowers were fired not long after this was reported via their whistleblower hotline. Long before this ever came out.


http://money.cnn.com/2016/09/21/investi ... index.html
justine Elitist Beer Lover
User avatar
maurvir posted:
justine posted:
I read an article today that said a lot of whistleblowers were fired not long after this was reported via their whistleblower hotline. Long before this ever came out.


http://money.cnn.com/2016/09/21/investi ... index.html

Yup. yup.
all i can say is how dumb were those employees? I filled an OSHA backed whistle suite against my former employer when I was fired and it wasn't as clear cut a case as this WF stuff, and it was settled out of court.
maurvir Steamed meat popsicle
User avatar
"Never talk to HR" was a solid piece of conventional wisdom long before "never talk to the police" was. HR is solely there to protect the company, and if throwing you under the bus accomplishes that, then expect to find tread marks on your ass if you talk to them. IOW, if you feel you absolutely need to report something to one of those hotlines, have your resume polished and a few interviews lined up in advance.

The only upside, at least in this case, is if there ever are criminal prosecutions, the people who got fired trying to report it will likely either get off entirely or get a much better deal.
justine Elitist Beer Lover
User avatar
maurvir posted:
"Never talk to HR" was a solid piece of conventional wisdom long before "never talk to the police" was. HR is solely there to protect the company, and if throwing you under the bus accomplishes that, then expect to find tread marks on your ass if you talk to them. IOW, if you feel you absolutely need to report something to one of those hotlines, have your resume polished and a few interviews lined up in advance.

The only upside, at least in this case, is if there ever are criminal prosecutions, the people who got fired trying to report it will likely either get off entirely or get a much better deal.

I got the impression that the people that reported it didn't do anything wrong.
dv
User avatar
justine posted:
maurvir posted:
"Never talk to HR" was a solid piece of conventional wisdom long before "never talk to the police" was. HR is solely there to protect the company, and if throwing you under the bus accomplishes that, then expect to find tread marks on your ass if you talk to them. IOW, if you feel you absolutely need to report something to one of those hotlines, have your resume polished and a few interviews lined up in advance.

The only upside, at least in this case, is if there ever are criminal prosecutions, the people who got fired trying to report it will likely either get off entirely or get a much better deal.

I got the impression that the people that reported it didn't do anything wrong.

Of course they didn't. But that doesn't protect them from retribution in the short term.

The best argument in favor of the idea that corporations are people is that they will apparently shoot themselves in the foot in the course of exacting retribution on the people who wrong them.
justine Elitist Beer Lover
User avatar
dv posted:
justine posted:
maurvir posted:
"Never talk to HR" was a solid piece of conventional wisdom long before "never talk to the police" was. HR is solely there to protect the company, and if throwing you under the bus accomplishes that, then expect to find tread marks on your ass if you talk to them. IOW, if you feel you absolutely need to report something to one of those hotlines, have your resume polished and a few interviews lined up in advance.

The only upside, at least in this case, is if there ever are criminal prosecutions, the people who got fired trying to report it will likely either get off entirely or get a much better deal.

I got the impression that the people that reported it didn't do anything wrong.

Of course they didn't. But that doesn't protect them from retribution in the short term.

The best argument in favor of the idea that corporations are people is that they will apparently shoot themselves in the foot in the course of exacting retribution on the people who wrong them.


Maurvir was talking about criminal prosecution and maybe those ones would get a better deal.
dv
User avatar
justine posted:
dv posted:
justine posted:
maurvir posted:
"Never talk to HR" was a solid piece of conventional wisdom long before "never talk to the police" was. HR is solely there to protect the company, and if throwing you under the bus accomplishes that, then expect to find tread marks on your ass if you talk to them. IOW, if you feel you absolutely need to report something to one of those hotlines, have your resume polished and a few interviews lined up in advance.

The only upside, at least in this case, is if there ever are criminal prosecutions, the people who got fired trying to report it will likely either get off entirely or get a much better deal.

I got the impression that the people that reported it didn't do anything wrong.

Of course they didn't. But that doesn't protect them from retribution in the short term.

The best argument in favor of the idea that corporations are people is that they will apparently shoot themselves in the foot in the course of exacting retribution on the people who wrong them.


Maurvir was talking about criminal prosecution and maybe those ones would get a better deal.


Depends what they did before they reported.
justine Elitist Beer Lover
User avatar
dv posted:
justine posted:
dv posted:
justine posted:
maurvir posted:
"Never talk to HR" was a solid piece of conventional wisdom long before "never talk to the police" was. HR is solely there to protect the company, and if throwing you under the bus accomplishes that, then expect to find tread marks on your ass if you talk to them. IOW, if you feel you absolutely need to report something to one of those hotlines, have your resume polished and a few interviews lined up in advance.

The only upside, at least in this case, is if there ever are criminal prosecutions, the people who got fired trying to report it will likely either get off entirely or get a much better deal.

I got the impression that the people that reported it didn't do anything wrong.

Of course they didn't. But that doesn't protect them from retribution in the short term.

The best argument in favor of the idea that corporations are people is that they will apparently shoot themselves in the foot in the course of exacting retribution on the people who wrong them.


Maurvir was talking about criminal prosecution and maybe those ones would get a better deal.


Depends what they did before they reported.

That's true, but when i read it it sounded like they didn't do anything illegal.
maurvir Steamed meat popsicle
User avatar
They worked for Well's Fargo. The odds that they haven't committed at least some crime are low.
Metacell Chocolate Brahma
User avatar
More importantly, they betrayed rich people. The justice system can find something on them.
justine Elitist Beer Lover
User avatar
"Taxpayers Subsidized Wells Fargo Executive Pay Amid Bank’s Fraud".

Basically companies can write-off pay linked to performance, so for that $125 M bonus paid to Carrie Tolstedt Wells Fargo got about a $27 M tax credit.
Subsequent topic  /  Preceding topic
Post Reply

If you needed just one more reason to not trust Well's Fargo

Page: 1, 2, 3