CALIFORNIA—The city of Los Angeles filed a suit against Wells Fargo, alleging that bank employees engaged in fraudulent activity.
The case was brought to state court by Los Angeles City Attorney, Mike Feuer, on Monday, May 4. The complaints against Wells Fargo includes opening unauthorized accounts to meet quotas and lying about charging fees, which damaged customer’s credit.
Feuer attributes Wells Fargo’s unrealistic sales quotas as the source of employee’s misconduct. According to the lawsuit, Wells Fargo puts pressure on its employees to meet impractical sales, causing them to turn to fraud.
The lawsuit is seeking an injunction against Wells Fargo, ordering them to prohibit any employees from opening accounts. In addition, the suit seeks $2,500 per violation made. “In its push for growth, Wells Fargo often elevated its profits over the legal fights of its customers,” Feuer said during a news conference on Tuesday.
This is not the first time Wells Fargo has had problems with employees meeting quotas. In 2013, the company fired about 30 Los Angeles employees for creating fake accounts. Wells Fargo said employees created accounts to receive high sales and modify customer surveys.
Wells Fargo released the following statement in response to the allegations: “Wells Fargo’s culture is focused on the best interest of its customers and creating supportive, caring and ethical environment for our team members.”
