Loading ...Given the seemingly unceasing stream of scandal that has flowed out of Warren Buffett’s favorite bank, Wells Fargo, it’s hardly surprising that after doing everything from illegally repossessing the cars of American soldiers to fraudulently “cross-selling” credit cards and other products to millions of customers, the bank is now being called out for adding opaque products to the accounts of hundreds of thousands of customers – for services like pet insurance and legal services – without first explaining how to use them.
And in the latest sign that Trump appointee Mick Mulvaney is keeping the pressure on, the CFPB is investigating how Wells collected fees for these so-called “add-on products”, and recently prompted it to refund millions of dollars to customers. News of the bank’s latest scandal comes just days after Wells took a $619 million charge in the second quarter to refund customers for overcharging in its foreign-exchange, wealth management and auto- and mortgage-lending units. The bank also agreed to a $1 billion settlement with the CFPB in April – the largest ever levied by the agency – over its failure to manage risk.
Unsurprisingly, the bank has been aware of these issues for some time:
cont. https://www.zerohedge.com/news/2018-07-19/wells-fargo-has-been-caught-yet-another-scandal