LOS ANGELES–It has been frequently reported that the number of bogus accounts created as part of the Wells Fargo scandal totaled approximately 2.1 million.
But during court proceedings here, that figure was updated and could actually total as many as 3.5 million fake checking, savings and credit card accounts, according to attorneys for plaintiffs who are suing the bank.
During a hearing, U.S. District Judge Vince Chhabria asked attorneys on both sides to provide additional information related to the claim by those attorneys that more than an additional one-million bogus accounts may be involved. In 2016, when Wells Fargo was fined $185-million for the scandal that involved pressuring its employees to meet aggressive sales targets, it was estimated there were 2.1 million accounts involved.
That estimate was based on a review by the bank of accounts created between May 2011 and July 2015, while the new figure is an estimate of unauthorized accounts created between 2002 and this year, according to the Los Angeles Times. The higher figure is based on a recent internal investigation by the bank that concluded the practice of opening unauthorized accounts may have started as early as 2002, the Times added.
Bank spokesman Ancel Martinez told the LA Times the higher figure is an unverified estimate that is “based on a hypothetical scenario.”
During the hearing, Chhabria questioned whether the parties have the ability to accurately estimate the number of bank customers who may be eligible to participate in any settlement with Wells Fargo.
Chhabria also raised other issues with the proposed settlement too, suggesting that some terms will have to be changed.
“For instance, attorneys representing clients in a separate class-action lawsuit over improper bank overdraft practices argued in a filing this week that the terms of the unauthorized accounts settlement could force their clients to give up their claims against the bank,” the Times reported.
Chhabria added that he believes the settlement agreement should be rewritten to make clear that the overdraft claims are separate and not covered by the unauthorized accounts settlement.