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Wells Fargo boosts number of unauthorized accounts to 3.5M

Joe Mont | August 31, 2017

The unauthorized account scandal that rocked Wells Fargo just became a whole lot worse. A third-party review commissioned by the banking giant has found that the number of falsified accounts is nearly 1.5 million higher than the 2.1 million initially uncovered and disclosed.

In September 2016, the Consumer Financial Protection Bureau fined Wells Fargo Bank, a subsidiary of Wells Fargo & Company, $100 million for what it called “the widespread illegal practice of secretly opening unauthorized deposit and credit card accounts.” The infractions date back to 2011.

The crux of the allegation: spurred by sales targets and compensation incentives, employees boosted sales figures by covertly opening accounts and funding them by transferring funds from consumers’ authorized accounts without their knowledge or consent, often racking up fees... To get the full story, subscribe now.