Wells Fargo Discloses Lawsuits Over Scandals

Wells Fargo, the embattled bank, disclosed in a regulatory filing that it is facing lawsuits over scandals in its auto lending and mortgage units.

In a regulatory filing, Wells Fargo said two of the lawsuits are class action cases that allege the national bank violated federal and state consumer fraud laws. Ex-employees have also filed a lawsuit against Wells Fargo contending they were fired for bringing concerns about sales practices to the attention of the company. The lawsuits were disclosed in a filing in which Wells Fargo released its third-quarter earnings.

“The disclosure included in our filing today reflects the company’s continued commitment to transparency. Our top priority is to rebuild trust, and we remain focused on making things right for our customers, team members, community, partners and shareholders,” a spokesman for Wells Fargo said in an email to Reuters.

The disclosure on the part of Wells Fargo comes at the same time that Keith Noreika, the acting U.S. comptroller of the currency, is relaxing a restriction put in place last year when the bank’s fake account scandal emerged. This will make it easier for Wells Fargo to pay employees when they leave the embattled financial institution. The push on the part of Noreika comes as President Donald Trump has been moving to loosen financial regulations put in place during the Obama administration.

If the OCC’s idea is approved, it will be able to treat Wells Fargo and other big banks with more leniency if they are hit with sanctions down the road.

Wells Fargo has been under scrutiny ever since it was revealed that employees opened a slew of fake accounts in order to reach their sales targets. The company has also been accused of selling unnecessary auto insurance to consumers, and has also faced other allegations of consumer fraud. In the wake of the scandal, Wells Fargo has been making big moves to improve its culture, win back customers and repair its reputation.



The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.