Ohio Gets Rid of Wells Fargo
Ohio decided to cut doing business with Wells Fargo due to the recent, unacceptable behavior of creating millions of fake bank accounts with customer names. So far cities in Illinois, Washington, and the Wells Fargo home state of California have already suspended business with the bank for at least one year.
Between 2011 and 2015 Wells Fargo employees created millions of fake bank accounts to meet targeted sales and collect more money in fees from their customers who were unaware of the unauthorized accounts. Wells Fargo’s actions violated the Truth in Lending Act and threatened to destroy their customers credit score.
This month Ohio announced that Wells Fargo is suspended from doing business with the state for at least one year. Wells Fargo mostly participated in funding state bonds in Ohio and is now forbidden to do so because of the loss of trust between the public and the bank. Ohio will now solicit related services from other companies even though Wells Fargo has contributed over $800 million to state bonds in the last couple years. Whether Wells Fargo will be able to gain business with Ohio again after a year will be determined at a later time.
It was settled in September that Wells Fargo will pay $185 million dollars in penalties for their fraudulent acts. Another $5 million dollars will be distributed to customers who are victims of the unlawful act and fee generating accounts.