Most would agree that $185 million dollars is a lot of money, but is it enough to teach a lesson to a billion dollar company? This September 2016, Wells Fargo was fined by federal regulators for opening accounts on behalf of clients who did not consent to these accounts, or have any clue they were opened. The $185 million dollar fine was ordered as a step towards restitution, to assist those who have fallen victim to Wells Fargo’s greed.
The problem is, there is no amount of money that can turn back the damage done to a credit score as a result of these fraudulent accounts. It is believed that over two million credit card and deposit accounts were opened by Wells Fargo over a period of five years, and all of these accounts were unauthorized by the bank’s trusting customers.
So how does one truly quantify the damage? It’s difficult to calculate. If a consumer had no idea that an account was opened on their behalf, then they had no idea there was an annual fee to pay, then of course, they did not know they had to pay an annual fee. Consequently, these accounts would have accumulated late fees, and their credit reports would have reflected this nonpayment, damaging their scores significantly.
There are other instances of Wells Fargo employees transferring money from existing, authorized accounts of customers into these unauthorized, unknown accounts. As a result, clients were charged late fees for insufficient funds in their existing, authorized accounts.
The reporting of late fees most certainly leads to a drop in one’s credit score. In turn, consumers can be charged higher interest rates, denied lines of credit, unable to obtain mortgages to buy their dream home or refinance an existing property; the list goes on.
Credit scores determine so much in our day to day lives. Even potential landlords, employers, and cell phone companies rely on credit scores. If, for example, a landlord or employer pulls a report and sees an excess of late charges, they might be reluctant to rent a property to that person or hire them for the job because of what those late charges say about a person’s responsibility to their commitments, financial or otherwise. Your credit report speaks volumes about you, which is all the more reason to treat those obligations with great care. Unfortunately, Wells Fargo did not did not treat its customers and their accounts with great care. They acted egregiously and disregarded the outcome of people’s economic lives, a responsibility they most assuredly had as a reputable financial institution. For more information on this story: Wells Fargo Unauthorized Accounts
If you think your credit score has been damaged as a result of an unknown Wells Fargo account, then time is of the essence. Please do not hesitate a minute longer to contact McCarthy Law. At McCarthy Law, we care about your today, and your tomorrow. Our primary focus is defending consumer rights, so whether it’s resolving credit reporting errors, settling debt or consolidating private student loans, we fight the good fight to make sure you end up on top. Go ahead and give us a call today for a FREE evaluation of your credit report – 1-855-867-2121. You can also visit our website at McCarthy Law Credit Errors. We have attorneys and experienced staff standing by to help you today, so what are you waiting for?