LOS ANGELES — Wells Fargo Bank employees driven by strict sales pressure issued unwanted credit cards and opened unauthorized accounts that charged customers fees and damaged their credit, according to a lawsuit filed by the city of Los Angeles.
The civil complaint filed Monday contends the largest California-based bank violated state and federal laws by misusing confidential information and failing to notify customers when personal information was breached, City Attorney Mike Feuer said Tuesday.
“In its push for growth, Wells Fargo often elevated its profits over the legal rights of its customers,” Feuer said.
The bank, which has blamed the problems on a few rogue employees who have been disciplined or fired, said it would defend itself.
“Wells Fargo’s culture is focused on the best interests of its customers and creating a supportive, caring and ethical environment for our team members,” the San Francisco-based bank said in a statement.
The city’s investigation found only token efforts to prevent wrongdoing, according to court papers.
The complaint was filed under a law that allows attorneys representing large California cities to seek relief for unfair business practices for customers statewide.
“The result is that Wells Fargo has generated a virtual fee-generating machine, through which its customers are harmed, its employees take the blame, and Wells Fargo reaps the profit,” the lawsuit claims.
