NEW YORK (TBEN) — For more than a decade, US Bank has pressured its employees to open fake accounts in their customers’ names in order to meet unrealistic sales targets, the Consumer Financial Protection Bureau said Thursday, in a case closely resembling it. sales practices scandal exposed at Wells Fargo over the past decade.
The CFPB alleged that the US bank had accessed consumer credit reports without their consent to open checking and savings accounts, credit cards and lines of credit. To this end, employees were encouraged to meet the bank’s goals of selling multiple products to each customer at the bank.
The scale of the US bank counterfeit bill scandal was not immediately disclosed by the CFPB, but the bank was forced to pay $37.5 million in fines and fines and will have to refund customers all fees they paid for the opened accounts. have paid.
“For more than a decade, US Bank knew its employees were abusing its customers by misusing consumer data to create fictitious accounts,” CFPB executive director Rohit Chopra said in a statement.
A spokesman for US Bank, the nation’s fifth largest bank, did not immediately respond to a request for comment.
The scandal over Wells Fargo’s sales practices shocked the financial world about six years ago when it was revealed that the bank had encouraged employees to open millions of fake accounts to meet its sales targets. The scandal ravaged Wells Fargo’s reputation, led to multi-billion dollar fines against the bank and almost immediately led to the resignation of the bank’s CEO and eventually its board of directors.
Wells has been under close surveillance by the Federal Reserve since the outbreak of that scandal, which has prevented the bank from getting any bigger until she restored her workplace culture.