Wells Fargo & Co, the largest US bank by market capitalization, said on Tuesday it would eliminate all product sales goals in retail banking, starting next year.
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Wells Fargo CEO John Stumpf said that the company took the step to allay consumer concerns.
The CFPB alleged that, by Wells Fargo’s own analysis, employees opened more than 2 million deposit and credit card counts not authorized by consumers.
The company also announced Tuesday morning that it will eliminate all product sales goals in retail banking, effective January 1, 2017. “For the past several years, we have significantly strengthened our training programs, controls and oversight and have evolved our model to ensure we are rewarding deeper relationships and providing excellent customer service”. Wells Fargo fired 5,300 employees.
Stumpf’s statement says the elimination of sales goals will be good for customers and for the bank’s bottom line. California authorities accounted for the rest.
Wells Fargo, the world’s largest bank by market value, has been under fire since the CFPB accused the bank of illegally boosting sales figures by opening unauthorized deposit and credit accounts and then covertly funding them with customers’ money, sometimes creating phony email addresses to enroll them.
Under the terms of a settlement, Wells Fargo will pay $185 million in fines, including penalties imposed by the U.S. Office of the Comptroller of the Currency and the City and County of Los Angeles, according to a statement last week from the consumer bureau.
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The U.S. Senate Banking Committee plans a hearing September 20 on the matter.
