WFS Slapped With $1 Billion Fine

[elysiantraveller]

I'm not a fan of the CFPB but this is interesting. Curious to know what they were doing on the mortgage side. Rate locks are typically a place where violations can occur.

Good on the Administration though. That's a pretty harsh fine.

Wells Fargo fined $1 billion for insurance and mortgage abuses

[tucker6]

Wells Fargo in 2013 had me sign up for a special rate savings account with no fees she said. Three months later, we start getting hit with monthly fees. Complained to the bank that we had been defrauded and they refunded our fees and closed the account pronto. A couple years later, Wells Fargo is hit with a class action suit for doing this to thousands of people. The bank was pushing the employees so hard to sign people up to new accounts that they skirted the truth about what would happen in the accounts.

[elysiantraveller]

Originally Posted by tucker6

Wells Fargo in 2013 had me sign up for a special rate savings account with no fees she said. Three months later, we start getting hit with monthly fees. Complained to the bank that we had been defrauded and they refunded our fees and closed the account pronto. A couple years later, Wells Fargo is hit with a class action suit for doing this to thousands of people. The bank was pushing the employees so hard to sign people up to new accounts that they skirted the truth about what would happen in the accounts.

A lot of banks got busted for doing weird fee things around that time.

These are more interesting though as I'm not sure what insurance coverage they are charging for improperly on the car side... Maybe GAP. Failure to pay though shouldn't result in default though I don't believe. Wisconsin would know more since I haven't been in a dealership Finance Office in about a decade.

As far as the mortgage stuff I'm just curious what they are doing there. Its likely some improper form of using teaser rates for short-terms and then charging lock extensions after the fact. Rate locking has been a tricky since last fall with the volatility we are seeing.

I just had to extend one a week and it ended up costing us a decent chunk... I didn't charge it to the borrower in that case though.

[chadk66]

My step brother works in the mortgage division at Wells Fargo I'll have to ask him.

[Parkview_Pirate]

I'd be far more impressed if .gov pulled their charter, and tossed a couple of dozen Wells Fargo execs in prison for 20 years.

Instead, a fine does nothing but result in a hidden tax on customers. It hardly discourages the fraud.

[Lemon Drop Husker]

Pretty sure they were tacking on the expensive insurance you can tag on automobiles including the ever best of unemployment insurance for a car payment.

I started my career in that world and was pushed to sell that stuff because it was pure gold for those who sold it. Not even close to being good for the customer.

WF is also responsible for opening up accounts for customers who didn't even know they had them so employees could make quotas. And yes, customers would get charged for said accounts.

WF was also in on the whole bank "fraud" mortgage collapse of 2008/09. They sold most of their mortgages to Freddie/Fannie along with FHLB, and thus were more than happy to refinance any loan at a "lower" rate for the right amount of fees, along with the sketchy loan practices of the day in Interest Only and/or ARM loans that are still in practice today.

Personally, I don't even know how Wells Fargo is even able to operate. Not sure they have done the general public a service for well over 2 decades while housing billions of dollars.

[davew]

Originally Posted by Parkview_Pirate

I'd be far more impressed if .gov pulled their charter, and tossed a couple of dozen Wells Fargo execs in prison for 20 years.

Instead, a fine does nothing but result in a hidden tax on customers. It hardly discourages the fraud.

NSF checks will be going up to make the bank competitive....

[elysiantraveller]

Originally Posted by Lemon Drop Husker

Pretty sure they were tacking on the expensive insurance you can tag on automobiles including the ever best of unemployment insurance for a car payment.

I started my career in that world and was pushed to sell that stuff because it was pure gold for those who sold it. Not even close to being good for the customer.

Yeah the car stuff is interesting. Haven't spun a deal up in 10 years or so now. We had all kinds of stuff we could package in. Thing is though I know we could cancel warranties and other backend products for refunds. I would think you could do that while still owning the car. Guess it wouldn't re-amoratize the loan though. Still a lot of that stuff is done st the dealer level so I wonder how Wells did it.

The mortgage thing is pretty easy to believe and I'm sure it's some thing to do with locks, discount fees, and extensions. There is always the fine print. I always get excited when I know I'm going up against a certain well known mortgage company because 1) I know their game and 2) I can smash them on those rates and fees.

[lamboguy]

Originally Posted by Parkview_Pirate

I'd be far more impressed if .gov pulled their charter, and tossed a couple of dozen Wells Fargo execs in prison for 20 years.

Instead, a fine does nothing but result in a hidden tax on customers. It hardly discourages the fraud.

banks, insurance and drug company's put away slush funds because they know they fleeced people and will have to give back some of the money they stole at some other point of time. when we have to pay our taxes, we just fork it over to the IRS or department of revenue in the states that tax you. banks arbitrate the figure and never pay what they owe.

mainly because of banks the people of this country are forced to pay off a $21 trillion debt. in the fractional banking system, banks operate with 10-1 leverage which basically amounts to welfare for the banks that taxpayers have to pay up for.

there is nothing good about banks or other financial company's, the ones that get caught need to do time because there is no way society can exist without banks.