Wells Fargo Accidentally Foreclosed on 545 Homeowners...
If I had the room, the title would have been:
Wells Fargo Accidentally Foreclosed on 545 Homeowners...after they accidentally repossessed about 20,000 cars
You just can't make this stuff up: the Washington Post article
"Wells Fargo acknowledged Tuesday that, because of a calculation error, it had improperly foreclosed on 545 distressed homeowners after they asked for help with their mortgages. Overall, 870 homeowners were denied help for which they qualified — with more than half losing their homes afterward, Wells Fargo said."
It only gets better. The Washington Post reports regarding accidental repossessions:
"It (Wells Fargo) reported that 570,000 auto loan customers had been charged for insurance they did not need, sometimes leading to their cars being repossessed."
Now it is bad enough that you get your car accidentally repossessed or your house foreclosed. These customers also had their credit scores damaged. The Washington Post article goes onto say:
"Wells Fargo acknowledges the problem and lists the solution as a “work in progress” on its website. The bank is researching how its activities affected customers’ credit scores, Wells Fargo chief executive Tim Sloan said in a March speech. “We want to make sure we make that right for our customers if they had been affected.” Part of the problem is that fixing the issue requires the cooperation of the notoriously opaque credit rating bureaus — TransUnion, Equifax and Experian."
A couple of thoughts - first of all, the bank doesn't need to research how those activities affected credit scores. These types of reportable events pretty much decimates a credit score. Second, a good bit of money handed over to the three credit bureaus will get those credit errors fixed in no time. Last time I checked the big three were a business and they all operate on the international language of money. The inability to get the credit bureaus to cooperate is a weak excuse to getting an inexcusable problem fixed.
How about a solution to this type of abuse? Well, as a Wells Fargo customer you signed away your right to participate in a class action lawsuit against the bank. How about holding the CEO and the executive suite financially responsible? That might get their attention. No, the politicians will just pull the Wells Fargo executives into a hearing and yell and scream at them in front of the cameras and proceed to at worst fine them. When you are as big as Wells Fargo these fines become trivial expenses.
The reality is that they are to big to fail. They are an almost 2 trillion dollar bank. At some point they are untouchable and they can treat customers however they want. Bank there at your own risk.