If you have not heard the recent financial news lately then you probably are living with plugs in your ears. The word is out that banking giant, Wells Fargo has been using excessive practices, threatening, applying scare tactics on their employees to bring in more business, forcing their employees to meet extremely high, almost demanding them to fulfill an exorbitant amount of sale quotas.
According to employees, the quotas were set to almost unreachable amounts, setting employees up to
do whatever they had to do to get new checking accounts, and credit card accounts.
Taking on the pressures of opening up fake accounts include, setting up fake email address, authorizing fake pin numbers, charging unbelievable fees, all leading to personal credit ratings being ruined, unauthorized accounts, even leading to accounts going into collections and dealing with debt collectors.
It has turned into a fiasco with over 5,300 low paying employees being fired over a period of five years regarding the whole situation. Millions of fines are now imposed onto Wells Fargo, and restitution is to be repaid.
What it comes down to is Wells Fargo executives and managers (who have received multi million dollar salary packages) have been sitting pretty on the top of the of this mountain while all those small employees had to partake in unethical techniques, taking aggressive actions setting up false accounts, all for the purpose of increasing sales.
Perhaps this is just the start of something bigger. Of course more investigations will be ongoing, more charges, more finger pointing, back stabbing, and more lives being ruined. (Sounds sort of similar to what is going on in the payday/cash advance industry with the CFPB still compiling mountains of information).
One good thing is the Consumer Financial Protection Bureau is on top of the whole fiasco, exposing all of the details that the public needs to be aware of and they are saying that restitution will be paid.
With Wells Fargo being exposed, will this open a river of other business dealing the same or similar sales practices? Could it be going on within your bank or credit union? Think about it. Are all of the policy makers within the company accepting responsibility? Do we classify this as corporate greed? Look at what is going on with the cost of the EpiPen.
I just heard today that employees in other banks and cash advance places are coming forward, with statements of how they are pressured into making sales, and cleverly not discussing or disclosing fees and options.
Learn how your financial institution works.
Watch your accounts.
Question anything that seems out of the ordinary with your personal information
Pull your credit report on regular basis.
Demand answers from your financial institution
Be aware something like this could also lead to identity theft
Watch your finances, your retirement accounts
Get more information from the Consumer Financial Protection Bureau at http://www.consumerfinance.gov/
The class action lawsuits are just beginning. Here is a recent story from ABC News that could affect over one million people. Click here for story.
I understand that businesses need sales. Yet customer satisfaction is what business is all about, setting standards when dealing with excessive sales tactics should be addressed.
Wells Fargo has been a trusted institution for so many years, yet it just shows you what greed and big business can turn into. With the Wells Fargo employees being fired over a five year period, what took so long for this scandal to be exposed?
Ask yourself: what else is going on out there?
Nobody should be blindsided.
Never Stop Learning….Angela