L.A. city attorney wants more info from Wells Fargo
Wells Fargo & Co. is making progress toward meeting the requirements of a settlement agreement it reached last year with the Los Angeles city attorney’s office but still has a few problems to sort out, according to a report from the bank.
“It shows movement toward making consumers whole and changing Wells Fargo’s business practices for the better — that’s a positive thing,” City Atty. Mike Feuer said Friday. “But by Wells’ own admission, there’s more to be done.”
Last year, Wells Fargo agreed to pay $185 million to Feuer’s office and federal regulators to end investigations into the bank’s creation of as many as 2.1 million unauthorized accounts. As part of its agreement with Feuer’s office, the bank agreed to take several steps to address harm done to California customers.
That included notifying customers that they should visit a branch to review their accounts, pledging to provide printed proof of account closures, refunding fees related to unauthorized accounts and offering a mediation service where customers could demand additional help or repayment.
The settlement also requires the bank to submit audit reports on the settlement to Feuer’s office every six months. The first of those reports was submitted last month and released Friday.
The eight-page audit found a handful of problems, including that nearly 13,000 customers — less than one-tenth of a percent of total customers — did not receive a notice from the bank last year. It also found that more customers may be eligible for refunds than the bank originally thought. Wells Fargo has not figured out a way to verify workers are providing customers with printed proof of account closures.
The bank is making progress, but Feuer said he still needs more information.
The audit report “omits key facts,” such as the number of Californians who have received refunds and the total amount of those payments, Feuer wrote this week in a letter to Wells’ attorney.
Feuer also requested more details on the bank’s mediation program, such as the number of customers who have requested mediation.
“I want to validate that everyone seeking mediation is getting access to that process and moving forward,” Feuer said. “The people of California and beyond ought to be assured that this process is moving forward as intended.”
California Wells Fargo customers who have been denied mediation or customers dissatisfied with the mediation process should call Feuer’s office at (213) 978-3393 or email mike.n.feuer@lacity.org, he said.
Wells Fargo spokeswoman Jennifer Dunn said the bank is gathering the information Feuer requested and expects to send it soon. She noted, though, that the bank may not be able to provide some information — including information about the outcome of mediation proceedings — because of confidentiality laws.
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