Wells Fargo & Co. are almost as well known for their scandals these days as they are for their financial services. The firm recently announced that they have finally begun to issue refunds for the add-on products that they did not fully explain to customers.
Catherine Pulley, a Well Fargo spokeswoman released a statement on this a few days ago, saying that “We are reviewing add-on products sold to consumers by the bank or its service providers and if issues are found during this review, we will make things right with customers in the form of refunds or remediation…We are working with our regulators on the ongoing review.”.
While Pulley would not comment on the total costs these refunds could incur when she spoke to the Insurance Journal recently, the Wall Street Journal was able to confer with sources close to the matter. ACcording to the Wall Street Journal these fees affected hundreds of thousands of customers, which could result in costs totaling as much as $180 million when all is said and done.
The new Wells Fargo CEO Tim Sloan took the lead in the wake of all of these scandals. Clearly, a big part of his job has been cleaning up the mess left by his predecessors. While this is a great step, Wells Fargo still is finding itself in the deep end.
The company paid out approximately $300 million in the second quarter in refunds, and agreed to a staggering $1 billion settlement as a result of their auto-lending and mortgage scandals.
Yes, Wells Fargo is working to rectify the wrongs of its past, but is it too little, too late? Only the you, the consumer, can decide that. The company is certainly working to earn back trust, but in the financial world trust is an all too essential commodity. If you use Wells Fargo for any of your financial assets, then you should certainly keep an eye on this story as it continues to develop.