Wells Fargo did it again. 2 million fake bank and credit card accounts created by its employees to boost sales figures! What a fiasco! Despite WF agreeing to pay $185m fines and firing 5,300 employees on Sep 8, 2016, the reparations are not satisfactory.
We all know about its racial discrimination in determining interests rates, especially targeting the minorities (African/Asian Americans and Hispanics). However, the 2 million bogus accounts is a scandal of a high class calculation! It’s no surprise though. Being one of the top five largest banks, Wells Fargo still manipulates the monthly loan payments for borrowers with fixed interest rates.
For example, on my private student loan, it usually charges me $145 for interests and $105 being applied on principal payment every month for the total of $250 monthly payment (I opted for 10% fixed interest rate by the time I took the loan). To my surprise, WF shamelessly applies only $32 to the principal payment for random months and charges more dollars for interests.
WF’s unethical business practices have reached another level. We should also note that it’s hiring system is discriminatory. The bank rarely hires African Americans even for entry level positions like tellers, mail sorters or bankers. It prefers Hispanics to fulfil the diversity requirement or its so-called equal employment opportunity, which is a lie.
There is a need for further scrutiny by Federal Agencies into WF business and HR practices. The investigation should also be conducted in other banks too.