Unethical Practice Of Wells Fargo: Scandals, Penalties And Evaluation

Wells Fargo scandals

Discuss about the Unethical Practice of Wells Fargo.

The employees of the Wells Fargo have made the millions of the unauthorized bank account as well as the credit card accounts and the customers are even not knows about it. The accounts, which were made through the telephonic conversation from that, the banks earns the fees that is unwarranted and the employees of the Wells Fargo beat their figures of the sales and earns more money. The employees of the Well Fargo open the unauthorized accounts secretly to meet their targets regarding sales and get the bonus. The Wells Fargo had fired the 5300 employees in the last few years due to their unethical behavior towards the bank. An employee starts making the fake email addresses and the PIN numbers with the help of the telephones and enrolls the customers based on the online banking services. The consulting has conduct the analysis about the Wells Fargo and it has concluded from that analysis that the employees of the bank has opens the deposits accounts about the 1.5 million and that account was unauthorized. The employees transfer the money from the existing accounts of the customers to that accounts, which has newly made. The banks also charged from the customers for the insufficient funds or the fees of the overdraft due to the shortage of the money from their original accounts. The employees of the Wells Fargo had submitted the applicants for the credit card about the 565443 accounts and the customer does not have any knowledge about it. The banks receive the fees about the $400000, which has incurred from the 14000 accounts and that fees involves the annual fees, interest charges, and the fees regarding the overdraft protection.

The Wells Fargo has to pay the penalty at the large amount. The bank will pay the $185 millions in fines and refund the money back to the customers about the $5 million. The Wells Fargo has said that they regret and are responsible for circumstances about the customers received those products, which they did not order. Wells Fargo has the market valuation, which is the highest as compared to any banks in the America and about the $250 billion. The investment firm that drives the legendary investor Warren Buffett is the Berkshire Hathaway, which is the largest shareholder of the company. The Wells Fargo first pay the civil penalty fund to the CFFPB’s about the $100 millions from the total fines and then to the office of the comptroller of the currency about the $35 million and then at last the Wells Fargo will pay the fine to the city and the county of the Los Angeles about $50 million. The David Vladeck said that the penalty of about the $100 million is enough. The Wells Fargo has conforms the CNN money in which the firings were takes place about the 5300 over many years. Two lakh sixty five thousand employees had listed in the bank at the end of the year 2015. The bank also said that the they make mistakes and accept that mistakes and are responsible for that mistakes and also take some actions against it. The CFPB had declined the comments on the beginning of the investigation and citing the policy of the agency. For the part of the settlements, the Wells Fargo has to make changes for the practices of the sales as well as the internal oversight.  The customers are angry from the bank for their loss. The Brian Kennedy said that the CNN Money has detected the account, which is unauthorized and created by the Wells Fargo about the year ago. The Brian Kennedy also says that he does not sign any checking account and said to the CNN Money that they have lost the banking customers. Mr. Mike Feuer who is the Attorney of the Los Angeles has says that the now the consumer should have the ability to faith in their banks. The office of the Feuer has filed the claim against the Wells Fargo in the year 2015 for affirmation of the accounts, which has unauthorized. The office of the Feuer getting calls and emails from the customers about 1000 and from the employees of the Wells Fargo, which is current or former regarding the affirmation after filing the suit. The Wells Fargo has rejected that there was the consulting firm for the investigations of the allegation. Nevertheless, the person, who were familiar and told to the CNN Money that after filing the lawsuit, the bank has launched the reviews. After that, the scandals of the Wells Fargo were takes place at the national level. After that, the requirements for the settlements of the L.A. with the banks for alerting the customers of the California and told the customers that review their accounts and if the customers does not recognized their accounts or do not want then shut down the accounts (Cable News Network, 2016).

Evaluation of action

The Wells Fargo does not have the contributions regarding the social issues, which affects the operations of the company. The banks deals with those customers, which have the various views and that customers has most welcomed in the banks. The bank also hank through the scandal of the fake accounts and the bank will pay $4.1 million for the settlement of the charges of the Justice Department and seized the 413 cars, which has own by the service members that does not have any court order, the violation of the federal laws. The department of the Justice said that from the year 2008 to 2015, the illegal repossessions take place. The Army of the National Guardsman from the North California complains against the Wells Fargo that they seized their car for the preparation of deploying the Afghanistan. The bank auctions the car and tries to collect the amount of the $10000 from his family. The Wells Fargo will pay the $10000 to every members of the affected service; additionally they will also pay to the lost equity for the cars along with the interest and repairs their credits (Hearst Corporation, 2016).

As per the consequentiality theory, the bank does wrong actions and the employees as well, because only to achieve the target of the sales, they actually fool the customer, which is not right. However, according to the non- consequentiality theory, they perform their duty and beat the target.

The company should learn from their mistakes. It takes time to learn from the mistakes , then commit the mistake that have done and after that decides whether to ignore that mistakes or to lie or to own that mistakes. For the long-term benefits, the company should own that mistakes. This will help to get proceeds in the above life and in the markets. In order to own the mistakes, first recognized that mistakes and apologize. This will help the company to earn respect from the surrounding as well as the trust. In case, if the company covers the mistakes or lie upon it then situation will get worse and may be it cannot even handled by the company. So it is better to accept the mistakes that the company does and taking care that mistakes will not done at the further stage. After recognizing the mistake and apologize, it will help the company to take action for fixing the mistakes. The action, which has taken by the company, only those, can decide that the company is seriously feeling the regret and want to change the mistakes, especially in case of the scandals, which is the large mistakes of the company and it harms many customers. Therefore, the action should be effective for the correction of the mistakes and it should be equal or even larger than the mistakes done by the company. The company should take care about the mistakes that have conducted by any employees or nay department. There should be proper investigation for the anticipation of the mistakes and make the plan about to handle them (Sarhan, 2016).

As per the theory- what is right or wrong?

It is the result of the action, which has based on the moral judgment. This theory involves:

The action is right morally only if the agents promotes long-term interest and that agent would be individual person, organization, a group, or a country.

The action is right morally only if the outcomes are good in large amount and that affects the people.

It is the theory of the moral judgment, which has not based on the outcomes of the actions but on the principle that follows by anybody. It has three forms:

It is not depends on the facts and it is a moral reasoning. According to this theory, the actions of humans has motivated by either reasons or happiness. The happiness of the individual are differ from person to person, it is either good or bad.

It analyzes the choice of the individual of the rightness or wrongness, which is in terms of its character. It is the choice of an individual between the right and wrong.

Conclusion

As the legal actions has taken against the Wells Fargo, thus in the future the bank will have to send the confirmation email to the customers for opening any deposits accounts within an hour along with the application acknowledgement. The bank will also give the status letter about the decision for the credit card after submitting the application. However, all the customers should check their accounts as well the statements regularly for the dummy account opening or any other discrepancies. This practice is ethical for the customers; even they are busy for running the business and raising the family and other kinds of the things. The customers will know the balance of the chequebooks and will make sure that they have the money in their accounts for the transactions. The other benefits is that they will know the there does not have any unauthorized accounts and secured from the theft.  The customers also checked the credit reports regularly. If the consumers perceive any reimbursement, they can suit the file against the Wells Fargo with the CFPB (Market Watch, 2016).

References

Cable News Network.(2016). U.S. : Wells Fargo illegally repossessed 413 services members car. Retrieved on 1 octuber 2016 from https://money.cnn.com/2016/09/29/news/wells-fargo-servicemembers-cars/

Cable News Network.(2016). 5300 wells fargo employees millions phony accounts. Retrieved on 1 octuber 2016 from https://money.cnn.com/2016/09/08/investing/wells-fargo-created-phony-accounts-bank-fees/

Dayen,D.(2016). Why wells fargo’s executive will keep their bonuses, even after fake accounts scandals. Retrieved on 1 octuber 2016 from https://theintercept.com/2016/09/26/why-wells-fargos-executives-will-keep-their-bonuses-even-after-fake-accounts-scandal/

Hearst Corporation.(2016). For wells fargo CEO John Stumpf, social issues a minefield. Retreieved on 1 octuber 2016 from https://www.sfchronicle.com/business/article/For-Wells-Fargo-CEO-John-Stumpf-social-issues-a-6616329.php

Sarhan,A.(2016). 3 timeless lessons you can learn from the wells fargo & Mylan scandals. Retrieved on 1 octuber 2016 from https://www.forbes.com/sites/adamsarhan/2016/09/21/3-timeless-lessons-you-can-learn-from-the-wells-fargo-mylan-scandals/#3545f0da3cae

Market Watch.(2016). One lesson from wells fargo scandal: check your statements. Retrieved on 1 octuber 2016 from https://www.marketwatch.com/story/lesson-from-wells-fargo-chicanery-check-your-statements-2016-09-09

The New York Times Company.(2016). In wells fargo scandals, the buck stopped well short. Retrieved on 1 octuber 2016 from https://www.nytimes.com/2016/09/15/opinion/in-wells-fargo-scandal-the-buck-stopped-well-short.html?_r=0