Breach Of Ethics : The Case Of Wells Fargo Bank Essay

Decent Essays

Breach of Ethics: The Case of Wells Fargo Bank
The Issue
On September 8 2016, the Consumer Financial Protection Bureau (CFBP) announced that it was taking an enforcement action against Wells Fargo Bank . Wells Fargo is a Fortune 100 company and one of the "Big Four Banks" of the United States. Investigations conducted by the Bureau revealed that employees of the bank created unauthorized deposit and credit card accounts across the country to meet sales goals. Over the years, the bank’s employees opened over 1.5 million fraudulent bank accounts and 0.5 million fake credit card accounts for customers, to meet sales targets and obtain bonuses. The affected consumers, were being harmed by the associated charges and fees for these accounts. The fees include insufficient funds or overdraft fees for the deposit accounts and annual fees for credit card accounts.
The primary target for the accounts were the vulnerable such as immigrants who spoke little English, older adults with memory problems, students opening their first account and small business owners with multiple credit lines
Per CFBP, Wells Fargo employees temporarily funded newly-opened accounts by transferring funds from consumers’ existing accounts. The violations committed by Wells Fargo include:
• Using consumer names and personal data to create unauthorized deposit and credit card accounts.
• Transferring funds without authorization, which sometimes result in insufficient funds fees.
• Applying for credit-card

Get Access