Wells Fargo

Reasons to avoid

1. Opened 3.5 million unauthorized bank and credit card accounts in customers' names without their knowledge. The bank's own investigation found leadership was aware of the fraudulent sales practices as far back as 2002.congress.gov2016-09-08
2. Paid a record $3.7 billion CFPB settlement in 2022 for widespread illegal practices across auto loans, mortgages, and deposit accounts — including wrongfully repossessing cars and foreclosing on homes. An estimated 16 million consumers were harmed.sec.gov2022-12-20
3. Charged 570,000 customers for auto insurance they didn't need, causing up to 20,000 to default on their car loans. Also wrongly fined 110,000 mortgage clients for missed deadlines that were Wells Fargo's own fault.congress.gov2017-07-01
4. Federal regulators found statistically significant disparities in how Black and female borrowers received mortgage rate discounts. Wells Fargo denied Black applicants at more than twice the rate of white applicants between 2020 and 2024.cnbc.com2023-12-11
5. Accused of staging fake job interviews for Black and female candidates to create the appearance of a diverse hiring process. New York City ended its banking relationship with Wells Fargo over its persisting track record of discrimination.blackenterprise.com2023-12-20