Banking

Elizabeth Warren Slams Wells Fargo On Arbitration

The drumbeat against Wells Fargo got a bit louder on Capitol Hill, as Sen. Elizabeth Warren (D-MA) slammed the bank on Monday (Nov. 28), citing Wells’ attempts to have customers go through arbitration rather than pursue remedy in court.

In a Facebook post that appeared that day, Fortune reported, the senator stated: “After dozens of Wells Fargo customers sued the bank to recover fees they were charged from these fake accounts, Wells Fargo tried to boot the claims from court and into the closed-door, industry-friendly arbitration process,” Warren said. “Unfortunately, there’s a real chance a court will let Wells Fargo shuffle these claims off to die in arbitration.”

The bank’s attempt to mollify customers with revamped practices in the wake of the sham account scandal belie “meaningless” actions in light of the fact that the company is still pursuing arbitration, said Warren. Last week, the firm asked a U.S. court to uphold clauses that mandate arbitration. One of the issues, noted Fortune, is that the accounts were opened without the knowledge or permission of customers, which means that the contracts may not be legitimate in the first place.

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