Major Banks Suspected of Opening Fraudulent Accounts

Sep 27,2018

By now, you’ve most likely heard of Wells Fargo’s many offenses, including opening fraudulent accounts, which have led to more than $1 billion in fines and several different lawsuits. What you may not have heard is that other major banks have reportedly opened accounts without customer authorization, according to a recent review.

The Office of the Comptroller of the Currency (OCC) conducted a review of the nation’s major banks, following the Wells Fargo scandal. The review of 40 federally chartered banks found roughly 20,000 accounts that may have been opened without customer authorization. The head of the OCC, Joseph Otting, told lawmakers that some banks had given employees credit for opening accounts, even if the accounts were never activated or used by the customer. Otting also said the OCC had sent 252 “matters requiring attention” notices to the banks in question.

Despite finding these issues, the OCC declined to share the names of the banks with the Senate Banking Committee. According to Otting, releasing that “confidential information” would be inappropriate.

Compared with the estimated 3.5 million fraudulent accounts created in the Wells Fargo scandal, 20,000 questionable accounts seems far less significant. But it’s still a problem, and consumers deserve to know if their financial institutions have been involved in unsavory practices.

“Opening accounts without the knowledge or consent of the customer is an unconscionable practice that must be met with consequences,” said Attorney Walter Clark, founder of Walter Clark Legal Group.

Our firm has been handling personal injury cases throughout the California Low Desert and High Desert communities for over 30 years. With a 95% success rate, the personal injury attorneys at Walter Clark Legal Group will fight to hold those responsible for your loss accountable and win compensation to cover medical bills, lost wages, and pain and suffering. If you have been injured and want to discuss your legal options, contact us today for a free consultation with an experienced personal injury lawyer. We have offices in Indio, Rancho Mirage, Victorville, El Centro, and Yucca Valley, and represent clients through the entire California Low Desert and High Desert communities.

DISCLAIMER: The Walter Clark Legal Group blog is intended for general information purposes only and is not intended as legal or medical advice. References to laws are based on general legal practices and vary by location. Information reported comes from secondary news sources. We do handle these types of cases, but whether or not the individuals and/or loved ones involved in these accidents choose to be represented by a law firm is a personal choice we respect. Should you find any of the information incorrect, we welcome you to contact us with corrections.