Wells Fargo Bank, N.A., a subsidiary of Wells Fargo & Company
(NYSE:WFC), reached agreements with the Consumer Financial Protection
Bureau, the Office of the Comptroller of the Currency, and the Office of
the Los Angeles City Attorney, regarding allegations that some of its
retail customers received products and services they did not request.
The amount of the settlements, which Wells Fargo had fully accrued for
at June 30, 2016, totaled $185 million, plus $5 million in customer
remediation.
The company issued the following statement related to today’s news:
“Wells Fargo reached these agreements consistent with our commitment to
customers and in the interest of putting this matter behind us. Wells
Fargo is committed to putting our customers’ interests first 100 percent
of the time, and we regret and take responsibility for any instances
where customers may have received a product that they did not request.
Our commitment to addressing the concerns covered by these agreements
has included:
-
An extensive review by a third party consulting firm going back into
2011, which we completed prior to these settlements. The review
included consumer and small business retail banking deposit accounts
and unsecured credit cards opened during the period reviewed.
-
As a result of this review, $2.6 million has been refunded to
customers for any fees associated with products customers received
that they may not have requested. Accounts refunded represented a
fraction of one percent of the accounts reviewed, and refunds averaged
$25.
-
Disciplinary actions, including terminations of managers and team
members who acted counter to our values.
-
Investments in enhanced team-member training and monitoring and
controls.
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Strengthened performance measures that are tied to customer
satisfaction, loyalty and ethics.
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Sending customers a confirming email within one hour of opening any
deposit account, and sending an application acknowledgement and
decision status letter after submitting an application for a credit
card.”
In addition, as noted in a message
emailed to all Wells Fargo team members today, the company said “Our
entire culture is centered on doing what is right for our customers.
However, at Wells Fargo, when we make mistakes, we are open about it, we
take responsibility, and we take action. Today’s agreements are
consistent with these beliefs.” Customers can visit
wellsfargo.com/commitment to view their accounts, and for information
about this announcement.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified, community-based
financial services company with $1.9 trillion in assets. Founded in 1852
and headquartered in San Francisco, Wells Fargo provides banking,
insurance, investments, mortgage, and consumer and commercial finance
through more than 8,600 locations, 13,000 ATMs, the internet
(wellsfargo.com) and mobile banking, and has offices in 36 countries and
territories to support customers who conduct business in the global
economy. With approximately 268,000 team members, Wells Fargo serves one
in three households in the United States. Wells Fargo & Company was
ranked No. 27 on Fortune’s 2016 rankings of America’s largest
corporations. Wells Fargo’s vision is to satisfy our customers’
financial needs and help them succeed financially. Wells Fargo
perspectives are also available at Wells
Fargo Blogs and Wells
Fargo Stories.