Wells Fargo
Flagged · AvoidOne of the largest U.S. banks, with a decade-long record of consumer fraud, discriminatory lending, and regulatory violations.
Last updated September 4, 2026
Reasons to avoid
Issues span:Human RightsConsumerLabor
- Federal regulators found statistically significant disparities in the mortgage rate discounts Wells Fargo granted to Black and female borrowers compared with other customers. The Consumer Financial Protection Bureau flagged the bank's pricing practices for further scrutiny in December 2023.
- The bank paid a record $3.7 billion CFPB settlement in 2022 for illegal practices across auto loans, mortgages, and deposit accounts, with regulators saying the misconduct cost thousands of customers their vehicles and homes. More than 16 million consumer accounts were affected in total.
- Wells Fargo employees said they were directed to interview Black, female, and other minority candidates for jobs that had already been promised to someone else, creating the appearance of progress on diversity hiring. Federal prosecutors in New York opened a criminal investigation into whether the practice violated federal law.
- Wells Fargo paid a $1 billion penalty to the CFPB and OCC in 2018 after regulators found the bank had wrongly charged auto loan customers for insurance they didn't need, contributing to as many as 20,000 vehicle repossessions. The same order covered mortgage customers who were improperly billed for rate lock extension fees caused by the bank's own delays.
- Wells Fargo employees opened as many as 3.5 million bank and credit card accounts in customers' names without their consent, according to the bank's own expanded internal review. The accounts were driven by aggressive sales quotas and compensation incentives that rewarded signing up existing customers for products they never requested.
Ethical alternatives
Banking
Local Credit Unions
Member-owned, not-for-profit institutions with better rates and community focus.
📍 Local Business👥 Community Driven
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Climate First Bank
A B Corp and Fossil Free Certified bank offering checking and high-yield savings you can open online nationwide, with deposits kept out of fossil fuels.
✅ B-Corp
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Beneficial State Bank
B-Corp certified bank focused on social and environmental responsibility.
✅ B-Corp♻️ Sustainable
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Amalgamated Bank
Union-owned bank with strong commitment to social justice and sustainability.
✊ Unionized✊ Worker Owned
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Carver Federal Savings Bank
Oldest African American-operated bank in the U.S., serving underserved communities since 1948.
🖤 Black Owned👥 Community Driven
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As You Sow
A free nonprofit tool that screens any mutual fund, ETF, or 401k for fossil fuels, weapons, and other concerns, so you can see what your investments actually hold.
💚 Non-Profit📚 Free Resource
Visit →Common Questions
- Is Wells Fargo ethical?
- Wells Fargo has repeatedly settled with federal regulators over illegal banking practices, including opening as many as 3.5 million unauthorized accounts and paying a record $3.7 billion CFPB settlement in 2022 for abuses across auto loans, mortgages, and deposit accounts. Regulators have also found statistically significant disparities in how the bank granted mortgage rate discounts to Black and female borrowers compared with other customers.
- Why are people boycotting Wells Fargo?
- Wells Fargo faces criticism for a long pattern of consumer fraud and discrimination. The bank paid a $1 billion penalty in 2018 after wrongly charging auto loan customers for insurance they didn't need, contributing to as many as 20,000 vehicle repossessions, and federal prosecutors have investigated the bank for directing staff to hold sham job interviews with Black and female candidates.
- What are the best ethical alternatives to Wells Fargo?
- Local credit unions are member-owned nonprofits with better rates and community focus. Amalgamated Bank is a union-owned bank with strong commitments to social justice and sustainability. Beneficial State Bank is a B Corp certified bank focused on social and environmental responsibility.