Wells Fargo Contributes $ 3 Billion to Settle “Shadow Accounts”

The Californian bank was accused of having opened millions of bank accounts in the name of customers from 2002 to 2016, without warning them.

The fictitious accounts scandal, along with other illegal business practices, has severely tarnished the bank's reputation.
The fictitious accounts scandal, along with other illegal business practices, has severely tarnished the bank’s reputation. xx

The fake bank accounts created by Wells Fargo bank will have cost him dearly. The U.S. Department of Justice fined the Californian bank $ 3 billion for opening millions of bank accounts on behalf of clients from 2002 to 2016, without warning them. “Wells Fargo has admitted to having collected millions of dollars in commissions, fees and interest to which it was not entitled (…) and to have illegally misused personal and sensitive customer information, including their identifiers“, Said the Department of Justice in a statement. Five hundred million dollars, out of this 3 billion fine, will be paid back to customers injured by Wells Fargo.

The fourth-largest bank in the United States should not experience any difficulties in settling the bill. It has already provisioned, in June, $ 3.9 billion to meet this deadline. This $ 3 billion fine is in addition to penalties already paid in the past, which total $ 4 billion.

The fictitious accounts scandal, as well as other illegal business practices, have especially damaged the reputation of the bank, and cost their jobs to two successive CEOs. In addition to opening accounts without authorization, Wells Fargo has forced 600,000 customers to purchase unnecessary car insurance. And she wrongly seized the property of some 400 owners, following a computer error …

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