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Wells Fargo Faces Consumer Banking Fraud

July 31st, 2015 by

Consumer Banking Fraud

Wells Fargo Consumer Banking Fraud

The city of Los Angeles filed a lawsuit against the largest bank in California, Wells Fargo & Co., alleging consumer banking fraud. This legal action constitutes an unprecedented lawsuit in the history of consumer finance and banking class action lawsuits in the Golden State. According to BigClassAction.com, the main offense against was the bank’s effort to “persuade their employees to engage in unfair, unlawful and fraudulent conduct.” Furthermore, one of the plaintiffs, Shahriar Jabbari resident of Campbell, CA, alleges that he and a class of consumers fell victim to Wells Fargo’s encouragement of abuses by employees in its different branches. The allegations against the banking giant include unfair enrichment, violations of the Federal Fair Credit Reporting Act (FACTA) and violations of the Unfair Competition Act of California and consumer protection laws.

How Does the Unfair Competition Act work?

Under the Unfair Competition Act of California (UCL), as defined by Section 17200 of the Business and Professions Code (Business and Professions Code Sections 17200- 17210), unfair competition in California can be violated by any of the following:

  1. An unlawful commercial act or practice;
  2. An unlawful or unfair business act or practice;
  3. A fraudulent business act or practice;
  4. Unfair, deceptive, untrue or misleading advertising;
  5. Any act prohibited by sections 17500-17577.5 of the Business and Professions Code

How Did Wells Fargo Violate the Unfair Competition Act?

Wells Fargo set unrealistic monthly sales quotas for their employees and pushed them to meet these quotas by any means possible. Actions, encouraged by Wells Fargo and unwillingly taken by bankers, to meet the impractical goals include:

  • Open unauthorized bank accounts and credit cards on behalf of their customers
  • Withdraw money from the unauthorized accounts
  • Send customers to collections when they defaulted on unauthorized overdrawn account balances and unpaid credit cards

If you think you experienced consumer banking fraud, under the violation of any of the Prohibited Acts mentioned above, do not wait any longer, call 1-800-THE-LAW2 at 1-800-380-8080 for a FREE legal consultation.

If You Fell Victim to Consumer Banking Fraud, Call 1-800-380-8080!

If you or a family member, neighbor or friend have fallen victim to false advertising or were victimized by unfair business practices, do not hesitate to speak to one of our experienced class action attorneys at 1-800-THE-LAW2. Let us get you connected with a Class Action attorney who will protect your consumer rights. Call 1-800-380-8080 TODAY and take the first step towards achieving justice and compensation, either you get paid, or you don’t pay at all™!

Sources:

  1. BigClassAction.com. Wells Fargo Facing Consumer Banking Fraud Class Action Lawsuit. Retrieved June 24, 2015.
  2. LegInfo.ca.gov. Business and Professions Code Section 17200-17210. Retrieved June 24, 2015.
  3. Mark Kelly. “Wells Fargo Sued, Accused of Opening Accounts Without Customer Knowledge.CBS SF Bay Area. Retrieved June 24, 2015.

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