Wells Fargo has been accused of fraudulent banking practices, including withdrawing money from customers without their permission in order to satisfy sales quotas.
An official lawsuit was filed by the Los Angeles city attorney Michael Feuer on Monday, which mentions that company employees were also pressured into registering relatives and friends for bank accounts. Unauthorized money withdrawals made by pressured Wells Fargo employees were made in order to pay fees, allegations also suggest.
"In order to achieve its goal of selling a high number of 'solutions' to each customer, Wells Fargo imposes unrealistic sales quotas on its [California] employees, and has adopted policies that have, predictably and naturally, driven its bankers to engage in fraudulent behavior to meet those unreachable goals," Feuer writes in the lawsuit, according to ABC.
Although the lawsuit does not list specific customers who have been affected by the fraudulent banking practices, it does mention that many of them were unlawfully placed into collections because of unauthorized withdrawals remaining unpaid.
Wells Fargo officials have since rebutted claims made by Feuer's office, mentioning that it maintain the best interests of workers and customers.
"Wells Fargo's culture is focused on the best interests of its customers and creating a supportive, caring and ethical environment for our team members," company representatives wrote in a statement, ABC also reports.
"This includes training, audits and processes that work together to support our Vision & Values and our commitment to customers receiving only the products and services they need and will benefit from."
Wells Fargo is said to be liable for $2,500 for each violation in civil penalties if the case moves forward.
