Complaint Alleges Wells Failed to Notify Customers of Unauthorized Use of Personal Information
City Attorney Mike Feuer has announced that his office has filed a civil lawsuit against Wells Fargo, alleging the company has victimized consumers by opening customer accounts, and issuing credit cards, without authorization–then failing to inform customers of the alleged misuse of their personal information or to refund fees for unwanted services.
“Consumers should be entitled to expect that major financial institutions will treat them fairly,” said Feuer. “Our lawsuit alleges that in Wells Fargo’s push for growth the bank often elevated profit over its customers’ legal rights.”
The complaint alleges Wells Fargo’s business model imposed unrealistic sales quotas that, among other things, have driven employees to engage in unlawful activity including opening fee-generating customer accounts and adding unwanted secondary accounts to primary accounts without permission. These practices allegedly have led to significant hardship and financial loss to consumers, including having money withdrawn from customer’s authorized accounts to pay for fees assessed by Wells Fargo on unauthorized accounts and derogatory notes on credit reports when unauthorized fees went unpaid, causing some customers to purchase identity theft protection.
Furthermore, the complaint alleges that Wells Fargo failed to properly inform customers of misuse of their personal information and failed to refund unauthorized fees.
Feuer is seeking Wells Fargo customers’ help asking them to review their own accounts and answer the following:
- Have unauthorized savings and checking accounts been opened in your name?
- Have accounts you’ve closed stayed open?
- Have you received debit or credit cards you didn’t request?
- Has a line of credit been opened that you didn’t ask for?
- Have you been charged fees for any of these unauthorized activities?
Wells Fargo customers finding discrepancies can call the City Attorney’s dedicated hotline: (213) 978-3393.
The City Attorney’s lawsuit is seeking an injunction against Wells Fargo to prohibit the company and its employees from engaging in the alleged practices relating to the opening and maintaining of bank accounts.
Wells Fargo could also be assessed civil penalties of $2,500 for each violation.
The case is being handled by the City Attorney’s Criminal Branch, Complex & Special Litigation Team, led by Deputy City Attorney Suzanne Spillane, with Jeremy Berzon, Jessica Brown and Ben Delfin.
