Wells Fargo reveals more self-inflicted wounds
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Wells Fargo reveals more self-inflicted wounds

SAN FRANCISCO
August 31, 2017 6:52am

• Investigation finds another 1.4 Million unauthorized accounts
• “We apologize to everyone who was harmed by unacceptable sales practices that occurred in our retail bank”

Wells Fargo & Co. says its employees opened 3.5 million accounts in the names of its customers, without their knowledge, let alone permission.
That’s 1.4 million more than previously revealed. “Additional refunds will be issued to customers as the result of an expanded third-party review of retail banking activity,” the San Francisco-based bank says Thursday. The new and larger number of unauthorized accounts results from an expanded third-party review that covered a nearly eight-year period — from January 2009 through September 2016 — and examined more than 165 million checking, savings, and unsecured credit card and line of credit accounts, Wells Fargo says. Of those, 3.5 million accounts were identified as potentially unauthorized, with approximately 190,000 accounts having incurred fees, the bank says. The expanded review includes time periods not covered by an initial review completed last year. The latest review also applies updated and expanded data sources for time periods previously examined. In September, Wells Fargo will issue a total of $2.8 million in refunds and credits due to customers on top of $3.3 million previously refunded. In addition, the expanded analysis included a review of online bill pay services. Approximately 528,000 potentially unauthorized online bill pay enrollments were identified by the review and Wells Fargo will refund $910,000 to those customers who incurred fees or charges. The company also says that customers will be notified in September of their option to join a class-action legal settlement related to unauthorized accounts (Jabbari v. Wells Fargo, et. al.). “We apologize to everyone who was harmed by unacceptable sales practices that occurred in our retail bank,” says CEO Tim Sloan. “To rebuild trust and to build a better Wells Fargo, our first priority is to make things right for our customers, and the completion of this expanded third-party analysis is an important milestone.”

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