Wells Fargo Is Accused of Harming Fraud Victims by Closing Accounts

Wells Fargo Is Accused of Harming Fraud Victims by Closing Accounts
Jim Seitz, a Wells Fargo spokesman, said, “We take seriously the concerns of current
and former team members and investigate them thoroughly, and we are reviewing the legal complaint that was filed this afternoon.”
Mr. Valles’s claims, combined with dozens of customer complaints to a federal regulator currently investigating
the bank’s handling of fraud investigations, add to a pile of problems for Wells Fargo.
“Improperly closing customer accounts in this manner ensured
that customers, not Wells Fargo, were left to absorb the costs of fraudulent activities and unauthorized withdrawals from their checking and savings accounts,” Mr. Valles’s complaint said.
Wells Fargo disclosed in August that the Consumer Financial Protection Bureau was looking into whether customers had been harmed by the bank’s practice of freezing
and often closing accounts after it or its customers detected signs of fraud.
Many Wells Fargo customers, however, have complained
that the bank was too quick to freeze or close accounts after signs of fraud — even if they themselves reported the suspicious activity.