WASHINGTON—A federal regulator determined Wells Fargo wasn't the only U.S. bank that opened accounts not authorized by customers—but has no plans to identify the institutions publicly.
A review of roughly 40 banks found that as many as 10,000 customer accounts opened during a three-year period lacked customer authorization, Joseph Otting, the U.S. Comptroller of the Currency, recently testified during congressional hearings.
The banks did not have paperwork to show whether customers had authorized approximately 10,000 other accounts, Otting said, according to a report from KREM.com.
The new mortgages, auto loans, credit cards, checking, savings and money market accounts represent a fraction of the estimated 600-million accounts the banks opened during the three-year period, he said.
"The OCC did not find pervasive or systemic issues in regard to improper account openings but did find the need for banks to improve their policies, procedures and controls," Otting told the Senate Banking Committee.
Customers who were harmed by the practices are expected to be reimbursed "if they can document an account was opened inappropriately," Otting added.
‘Matters Requiring Attention’
The OCC issued "matters requiring attention" notifications to the banks in question and is following up to ensure the financial institutions follow proper policies for account openings. However, Otting indicated the OCC doesn't plan to name the banks publicly, KREM.com stated.
Republican members of House and Senate banking and finance committees did not press the issue with Otting. However, some Democratic members of the panels demanded full disclosure.
"We are concerned that the decision to keep the specific findings of the review private leaves consumers exposed to past and future predatory behavior and impedes our ability as lawmakers to effectively conduct oversight over the banking industry," eight Senate Democrats wrote in a letter to Otting.