{"id":29341,"date":"2017-05-13T06:29:54","date_gmt":"2017-05-13T06:29:54","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=29341"},"modified":"2017-05-13T06:29:54","modified_gmt":"2017-05-13T06:29:54","slug":"wells-fargo-bogus-accounts-balloon-3-5-million","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/wells-fargo-bogus-accounts-balloon-3-5-million.html","title":{"rendered":"Wells Fargo bogus accounts balloon to 3.5 million"},"content":{"rendered":"

\n\tWells Fargo bogus accounts balloon to 3.5 million<\/span><\/span><\/strong><\/span>
\n<\/h2>\n

\n\tWells Fargo & Co (WFC.N) may have opened as many as 3.5 million unauthorized customer accounts, far more than previously estimated, according to lawyers seeking approval of a $142 million settlement over the practice.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe new estimate was provided in a filing late Thursday night in the federal court in San Francisco, and is 1.4 million accounts higher than previously reported by federal regulators, in what became a national scandal.<\/span><\/span><\/span>\n<\/p>\n

\n\tKeller Rohrback, a law firm for the plaintiff customers, said the higher estimate reflects "public information, negotiations, and confirmatory discovery."<\/span><\/span><\/span>\n<\/p>\n

\n\tThe Seattle-based firm also said the number "may well be over-inclusive, but provides a reasonable basis on which to estimate a maximum recovery."<\/span><\/span><\/span>\n<\/p>\n

\n\tWells Fargo spokesman Ancel Martinez in an email said the new estimate was "based on a hypothetical scenario" and unverified, and did not reflect "actual unauthorized accounts."<\/span><\/span><\/span>\n<\/p>\n

\n\tNonetheless, it could complicate Wells Fargo's ability to win approval for the settlement, which has drawn opposition from some customers and lawyers who consider it too small.<\/span><\/span><\/span>\n<\/p>\n

\n\t"This adds more credence to the fact there is not enough information to assess whether the settlement is fair and adequate," Lewis Garrison, a partner at Heninger Garrison Davis in Birmingham, Alabama who represents some objecting customers, said in an interview.<\/span><\/span><\/span>\n<\/p>\n

\n\tU.S. District Judge Vince Chhabria in San Francisco is scheduled to consider preliminary approval at a May 18 hearing.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe accounts scandal mushroomed after Wells Fargo agreed last September to pay $185 million in penalties to settle charges by authorities including the U.S. Consumer Financial Protection Bureau.<\/span><\/span><\/span>\n<\/p>\n

\n\tWells Fargo employees were found to have opened the accounts in part because of pressure to meet sales goals.<\/span><\/span><\/span>\n<\/p>\n

\n\tWells Fargo & Co (WFC.N) may have opened as many as 3.5 million unauthorized customer accounts, far more than previously estimated, according to lawyers seeking approval of a $142 million settlement over the practice.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe new estimate was provided in a filing late Thursday night in the federal court in San Francisco, and is 1.4 million accounts higher than previously reported by federal regulators, in what became a national scandal.<\/span><\/span><\/span>\n<\/p>\n

\n\tKeller Rohrback, a law firm for the plaintiff customers, said the higher estimate reflects "public information, negotiations, and confirmatory discovery."<\/span><\/span><\/span>\n<\/p>\n

\n\tThe Seattle-based firm also said the number "may well be over-inclusive, but provides a reasonable basis on which to estimate a maximum recovery."<\/span><\/span><\/span>\n<\/p>\n

\n\tWells Fargo spokesman Ancel Martinez in an email said the new estimate was "based on a hypothetical scenario" and unverified, and did not reflect "actual unauthorized accounts."<\/span><\/span><\/span>\n<\/p>\n

\n\tNonetheless, it could complicate Wells Fargo's ability to win approval for the settlement, which has drawn opposition from some customers and lawyers who consider it too small.<\/span><\/span><\/span>\n<\/p>\n

\n\t"This adds more credence to the fact there is not enough information to assess whether the settlement is fair and adequate," Lewis Garrison, a partner at Heninger Garrison Davis in Birmingham, Alabama who represents some objecting customers, said in an interview.<\/span><\/span><\/span>\n<\/p>\n

\n\tU.S. District Judge Vince Chhabria in San Francisco is scheduled to consider preliminary approval at a May 18 hearing.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe accounts scandal mushroomed after Wells Fargo agreed last September to pay $185 million in penalties to settle charges by authorities including the U.S. Consumer Financial Protection Bureau.<\/span><\/span><\/span>\n<\/p>\n

\n\tWells Fargo employees were found to have opened the accounts in part because of pressure to meet sales goals.<\/span><\/span><\/span>\n<\/p>\n

\n\tSource:- http:\/\/www.reuters.com\/article\/us-wells-fargo-accounts-idUSKBN1882UV<\/span><\/span><\/span><\/p>\n

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