Economy

Wells Fargo finds more unauthorized accounts, online billpay problems

Wells Fargo finds more unauthorized accounts, online billpay problems

The nation's largest mortgage lender has been rocked by scandal since late previous year, when it was revealed that Wells Fargo employees had opened millions of customer accounts without those customers' knowledge or approval.

After Wells Fargo said past year that its employees under pressure to meet aggressive sales targets had opened up to 2.1 million accounts between 2011 and 2015 without getting customers' permission, evidence quickly appeared that the bank's sales practices problems dated back even further. Sloan said no additional Wells Fargo workers will be fired in the wake of the new findings.

According to CNN, Wells Fargo reported Thursday that almost half a million accounts were missed during the original review, which covered the period between May 2011 and mid-2015.

Wells Fargo ended up paying a $185 million settlement with the Consumer Financial Protection Bureau after the episode.

More news: Trump Administration settles lawsuit for first travel ban
More news: Gas Prices Jump in Virginia, as Refineries Shut Down by Harvey
More news: U.S. to Release Oil From Strategic Reserve Due to Harvey

The tough talk comes after Wells Fargo revealed that 3.5 million accounts had been improperly opened, far more than the 2.1 million that was originally reported.

"Wells Fargo is not going to roll over and give up its real numbers, and their admission that they had more fake accounts all along just confirms that", Steven Christensen, who represents about 70 named plaintiffs in Utah, told Bloomberg.

Additionally, while originally 130,000 accounts were thought to be hit with unnecessary fees as a result of the fakes, the actually number of accounts was actually 190,000. Many couldn't afford the extra costs and fell behind in their payments, and in about 20,000 cases, cars were repossessed. The bank said that through an expanded review dating back to January 2009 up to September 2016, an overall total of 3.5 million potentially unauthorized accounts were flagged. Wels Fargo will refund $2.8 million to the affected customers, in addition to the $3.3 million the bank already agreed to pay. "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".

The review also uncovered a new problem - roughly 528,000 potentially unauthorized online bill pay enrollments.