Wells Fargo stripped of Better Business Bureau accreditation

by Ryan Smith19 Oct 2016
Wells Fargo can’t catch a break after revelations that it opened 2 million unauthorized customer accounts. States are falling over themselves to withdraw their business from the embattled bank. Its CEO, John Stumpf, was forced to step down. And now it has list its accreditation with the Better Business Bureau.

The BBB stripped Wells Fargo’s accreditation following the bank’s settlement with regulators over the scandal, according to a Charlotte Observer report. The government penalties pushed the bank below the “B” rating – the minimum required to retain accreditation. The bank currently has a “C-“ rating, according to the Observer.

Tom Bartholomy, president of the Better Business Bureau of the Southern Piedmont, told the Observer that Wells Fargo’s loss of accreditation was “quite remarkable.” He said that in his 34 years with the BBB, the bank is the largest company he’s seen have its accreditation revoked.

On its website, the BBB states that the bank’s accreditation was revoked due to “government action(s) against the business,” including the September settlement that included a $100 million fine from the Consumer Financial Protection Bureau.

Read more: Bartholomy told the Observer that the government’s actions will remain on the bank’s BBB record for three years.

“There’s nothing they can do to cure this, so they’re going to be out for at least a three-year period of time,” he said.

Wells Fargo said in a statement that it would “continue to work hard to restore our customers’ trust.”

COMMENTS

  • by realtor | 10/19/2016 2:27:02 PM

    Why should Wells Fargo "catch a break" after engaging in massive fraud and deceit of its customers?

    If the BBB continued to endorse that institution it would put its own reputation at risk.

  • by Anonymous | 10/19/2016 3:18:20 PM

    Exactly! Why is the standard, "go-to" response of the media to use phrases, such as "catch a break" or other words that imply that this is just bad luck? This was a well organized and well executed plan from the top down to commit egregious fraud on a massive scale. They should be closed down. This is unfathomable, and if literally any other small bank or any of the rest of us committed fraud like this we would be stripped of our licenses, monetarily fined, and sent to prison. Why is this institution treated any differently than the rest of us?

  • by Texas Red | 10/19/2016 5:16:51 PM

    As a real estate agent every contract financed through this company has been a nightmare. finding out the level of fraud is no big surprise. What IS a surprise is where are the indictments?? Were is the Congressional Finance Committee outrage?? Stunning cronyism at work.

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