SAN FRANCISCO (CBS SF) — A Wells Fargo customer is suing the bank, accusing it of deceiving customers by giving them new accounts and credit cards without their knowledge.
The Los Angeles city attorney filed the suit, but it could affect customers nationwide.
Frank Un said he only wanted one Wells Fargo account, but received ten.
“If I’d never checked my online banking, I would have never known these accounts were there,” Un said.
The suit claims Wells Fargo pushed its employees to meet unrealistic quotas every month, driving them to open new checking and savings accounts for customers that never asked for them.
“We’ve alleged that the business model elevates Wells’ profits over its customer’s rights,” Los Angeles City Attorney Mike Feuer said.
The suit also claims that once upper management knew of the problem, little was done to stop it.
“This is an institution that I am trusting with my money, so it is very alarming,” Wells Fargo customer Carmen Morton said.
San Francisco City Attorney Norma Garcia says customers should take a close look at their bank statements and credit report now.
If customers spot something unauthorized, Garcia says customers “ought to be demanding that Wells Fargo correct any errors.”
Wells Fargo is downplaying the allegation, blaming a few rogue employees.
The banking giant faces $2,500 penalties for each new account and credit card opened behind customers’ backs if they are found to be at fault.
The bank declined a request for an interview.