Accounts have fees. They were stealing money from their clients. They were also moving client money into the new accounts (to cover the fees). So customers would think they had $X dollars, but then when they went to make a purchase, they didn't.

It hurts the average Wells Fargo customer. Bank accounts often have certain fees, especially if you don't maintain a minimum balance. So people were being charged fees for a service they never asked for and never used. It also meant their money was being mismanaged. And in some cases Wells Fargo was opening lines of credit which directly affects a person's credit score and can affect their chances at opening up a new credit card or loan they *actually* want or need.

They are also artificially inflating their numbers of account holders and that is being dishonest to their shareholders. Major shadyness with huge potential for fraud.

When you open up account at Wells Fargo, you need to sign for the accounts that you have opened. The bankers would sign your name, agreeing to all of the terms and conditions of that account. When the account is overdrawn, you are liable to pay for those fees. The bankers needed to open a certain number of accounts per quarter to get a small bonus. They were being coerced by all levels of management to open accounts, no matter what it took. The bankers who did not meet their goals, would be punished by management (early morning sales sessions and group sessions where they would have to confess why they didn’t meet their goals, very embarrassing and demeaning).

We’re not just talking about checking accounts we are talking about credit cards and lines of credit which were opened without consent. The worst part of all this? The elderly were the easiest targets because they had no idea. This was going on until they got a letter in the mail. In that case, the bankers could make excuses on why it was opened and then close them out, inflating their numbers.

The mind fuckery that bankers would play with customers to open accounts was astounding. Make the fake accounts look active by creating automatic transfers between accounts each month. On the 15th transfer $25 on the 16th transfer it back. When the customer would come in, they’d go, “how don’t you remember this!? We talked about this when you signed for this.” Gas lighting the customer.

I was a banker during this time at WF and quit due to the pressures and bullshit. I ended up changing careers completely because of it. Never drank so much in my life, never wanted to drive off the road just so I didn’t have to go in.

Wells Fargo was essentially taking advantage of their customers by opening up accounts they didn't need and then charging them fees for it. This was not only wrong, but it caused many customers to be unknowingly charged fees for services they never asked for, and it also mismanaged their money. In some cases, Wells Fargo was even opening lines of credit for customers without their knowledge, which can have a major effect on their credit score and their ability to get the credit they actually need. This is a terrible thing to do and it's no wonder why Wells Fargo got in so much trouble for it.

Salesmen getting paid commissions to open accounts without diligence, full stop. Thank you for attending my TED talk.

I’m an insurance agent. I’m sure this didn’t happen a ton, but someone at WF obviously fucked up one of my client’s finances back when this was happening. Spent about 10 hours total with my client when she told me her money paid to us and to her electric company was going missing. Some quick reading of her bills and statements corroborated this. Ended up on the phone with a vice president of WF and a couple weeks later, about $1300 was returned to my client’s account.

fee inflation. each new account adds $10-$20 in revenue times hundreds of thousands is millions in new revenue

It's kind of like you having an unused vacation home and I use it cause you weren't. I clean it and leave it in pristine condition after I leave, as if I were never there. I would hope you wouldn't like it cause I did it without your permission.

While you think it may not hurt you, if they have promo for first time customers to open an account, it means you won't be eligible. Also, opening those accounts bloat up the numbers which is reflected on their reports (which eventually goes public and affects the stocks). So now the stocks go up even though the numbers are fake.

In addition to the account fees others mentioned, some people had credit cards or lines of credit opened in their name which both require a hard credit check and lower your credit score. That could raise their rate if they had say just moved and we're planning to buy a home in the new area, but opened a checking account first.

^(it is not really huge trouble for them, they use these to launder money for cartels and the like to make massive profits, and pay a slap-on-the-wrist fine for the trouble of getting caught.)