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Wells Fargo to pay $3.7B for mistreating customers

finance.yahoo.com

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Re: Wells Fargo to pay $3.7B for mistreating customers

#31

Post by mbg721 »

toomuchtodo wrote: post #16
mbg721 wrote: post #12

Earlier quoted context omitted.

The fact that people experience this and then somehow don't say "burn it all down" is miraculous.

I was unable to obtain a government backed mortgage for a decade because LexisNexis Risk Solutions was reporting a judgement inaccurately on my risk profile that they would not remove until I had a lawyer file suit against them and notified the CFPB. I received a $600 check as part of a $21M class action settlement [1]. I was lucky, and had the means to obtain creative financing (non-QM) when needed. Others are not s…

I agree 100%; what can a layman like me do to fix it?

Re: Wells Fargo to pay $3.7B for mistreating customers

#32

Post by fabianhjr »

ProAm wrote: post #8

WIth two massive scandals within 5 years I think this bank should be broken up as part of its punishment. It's clearly too big to run an honest consumer safe business.

What do you mean broken up?

It should be seized and either converted into a credit union (give ownership to the affected people) or a state run non-profit banking service. (And also implement the proposals for the postal service to offer banking services)

That would avoid both a lot of smaller wells fargos doing worse things and further financial damage to the economy, clients, and workers of splitting up a private company.

Re: Wells Fargo to pay $3.7B for mistreating customers

#34

Post by ProAm »

twblalock wrote: post #20
ProAm wrote: post #8

WIth two massive scandals within 5 years I think this bank should be broken up as part of its punishment. It's clearly too big to run an honest consumer safe business.

What about the 268,000 employees who work at Wells Fargo, 99% of whom had nothing to do with this? Most of those employees are just normal people trying to make a living, and it would be wrong to screw them because their bosses, who they never met or had anything to do with, did something wrong. Shutting down a company is the nuclear option -- it hurts many people who did nothing wrong, including most of the employee…

1) Breaking up does not mean shut down. They just need to be split into smaller pieces.

2) A vacuum provide ample opportunity for these people to start a new, honest bank as if there will be a need for it.

3) Sometimes evil just needs to be shutdown, Im sorry these people are working for a criminal organization, someone should have spoken up (Whistleblower money is huge for these types of things).

Re: Wells Fargo to pay $3.7B for mistreating customers

#35

Post by cornstalks »

more_corn wrote: post #2

But not to the customers themselves. God forbid the mistreated party ever see anything from the fines.

> The agreement with the Consumer Financial Protection Bureau includes more than $2 billion in “redress to consumers,” [...]

Looks like funds have been allocated specifically for that. Whether $2 billion is enough or not, I don't know.

Re: Wells Fargo to pay $3.7B for mistreating customers

#36

Post by _skel »

Analemma_ wrote: post #10
etchalon wrote: post #7

Earlier quoted context omitted.

I didn't have much of a choice. They bought our mortgage.

Example number ten thousand of why the "vote with your dollars and don't do business with them" defense of capitalism fails completely in practice.

> Example number ten thousand of why the "vote with your dollars and don't do business with them" defense of capitalism fails completely in practice.

Example number ten thousand of how everything bad is blamed on "capitalism." It's a lazy, shallow, knee-jerk reaction that is plaguing this site and ought to be forbidden by the guidelines.

When you apply for a mortgage you are informed in advance that it might be sold. In fact, when I got mine I was told it would be sold. This information is given to every applicant as a legal requirement and people who don't like it don't need to go through with the application.

There are also significant legal requirements for mortgage servicers (such as Wells Fargo) which constrain them to such an extent that they are pretty much interchangeable. This is far from a free market. If you have a beef with this system, you should take it out on Congress and the CFPB, not "capitalism."

Re: Wells Fargo to pay $3.7B for mistreating customers

#37

Post by supernova87a »

After so many incidents with Wells Fargo, doesn't this point to something deeply ingrained in that company's culture? Such that even executives cannot change something about the system at the company that they have created?

There must be some bad, little, everyday incentives permeating working at WF that causes the people there to produce these bad behaviors year after year. You can blame and change the execs, but they're not even in control of (or maybe even aware of?) the systems that are making people behave the way they do?

Re: Wells Fargo to pay $3.7B for mistreating customers

#38

Post by Meekro »

obblekk wrote: post #9

I feel so much cognitive dissonance realizing that there are hard working people literally losing their home and shelter wrongly while I might be sitting across from them at any time, expecting them to behave within normal social boundaries. Imagine a family with a new born, working 50+ hours at a physically demanding job, making $80k/yr combined, and then losing their home for no reason... and then being expected to…

I get what you mean, but what's the alternative? How should you behave if you're exempt from normal social boundaries because of your personal tragedy? Shout at random people? Throw things? Punch some guy in the face?

Seems to me it's better to try and be kind, and treat others right despite your horrible situation. The person you're treating cruelly because of your personal trauma could easily be going through a trauma worse than yours.

Apologies if I misunderstood what you were getting at, though. I wasn't clear on which social boundaries you'd propose to exempt people from.

Re: Wells Fargo to pay $3.7B for mistreating customers

#39

Post by twblalock »

fabianhjr wrote: post #32
ProAm wrote: post #8

WIth two massive scandals within 5 years I think this bank should be broken up as part of its punishment. It's clearly too big to run an honest consumer safe business.

What do you mean broken up? It should be seized and either converted into a credit union (give ownership to the affected people) or a state run non-profit banking service. (And also implement the proposals for the postal service to offer banking services) That would avoid both a lot of smaller wells fargos doing worse things and further financial damage to the economy, clients, and workers of splitting up a private c…

If people really think nationalization is a reasonable solution, I'd rather not punish banks at all.

Re: Wells Fargo to pay $3.7B for mistreating customers

#40

Post by ProAm »

Tempest1981 wrote: post #23

So what's the least-evil bank that has a network of cash machines everywhere? (Yes, still need cash for certain things) Edit: also with a non-buggy mobile app? My credit union has the worst app. They don't seem capable of improving it... probably outsourced.

Credit Unions
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