Here’s Another Way Wells Fargo Took Advantage Of Customers

Four former employees say that Wells Fargo made clients in its Los Angeles region pay for missing deadlines to lock in interest rates on loans, even though the delays were the bank’s fault.

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Media Outlet: Pro Publica

Jesse Eisinger wrote for Pro Publica about how Wells Fargo was blaming customers for its own delays and charging them extra fees on mortgages:

Wells Fargo, the largest mortgage lender in the country, portrays itself as a stalwart bankthat puts customers first. That reputation shattered in September, when it was fined $185 million for illegally opening as many as 2 million deposit and credit-card accounts without customers’ knowledge.
Now four former Wells Fargo employees in the Los Angeles region say the bank had another way of chiseling clients: Improperly charging them to extend their promised interest rate when their mortgage paperwork was delayed. The employees say the delays were usually the bank’s fault but that management forced them to blame the customers.

Author:

Jesse Eisinger was a Class of 2016 & 2017 New America Fellow, and is the author of The Chickenshit Club—an inside reference to prosecutors who were too scared of failure and too daunted by legal impediments to do their jobs. He is a senior reporter at ProPublica and writes a regular column for the New York Times’ Dealbook section.