Wells Fargo faces fresh lawsuit over fake accounts scandal

Wells Fargo is facing a lawsuit over its response to its fake accounts scandal.

In 2016, it was revealed that employees at Wells Fargo had been opening millions of bank and credit card accounts in customers' names without their consent in order to meet aggressive sales goals set by the company – a practice that was found to go back as far as at least 2011.

The scandal ultimately resulted in the resignation of CEO John Stumpf and other executives, lawsuits, and damage to the company's reputation.

Almost a decade later, a New Mexico schoolteacher, Amanda Gonzales, is leading a new proposed class action after Wells Fargo began notifying customers to contact the bank if they had been enrolled in any unwanted products.

The lawsuit alleges that Wells Fargo is banking on customers to throw out the letters, with Gonzales adding that she had been given the ‘runaround’ when she tried to learn her rights after being enrolled in an insurance product she did not sign up for.

The complaint reads: "Wells Fargo relies on the inconspicuous and suspicious nature of the letter to depress claims rates, shifting the burden on the customer to take action to dispute an 'enrollment' that Wells Fargo knows to have been.”

It adds that Wells Fargo is attempting "to avoid, reduce, and delay its ultimate liability and sweep under the rug its long-standing, intentional misconduct," by shifting the burden.

Specifically, the complaint accuses the bank of violating the federal Fair Credit Reporting Act, along with consumer protection laws in New Mexico and California. It is seeking at least $5 million for customers who received letters about the unwanted products.



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