Wells Fargo Using Arbitration To Kill Sham Account Suits

Wells Fargo is turning to arbitration to mitigate its accountability for the scandal, revealed last year, that its employees created as many as two million accounts without customer permission. The bank has sought to kill lawsuits by moving the cases into private arbitration, angering customers. “It is ridiculous,” Jennifer Zeleny, one of 80 customers suing Wells Fargo in a Utah federal court, told the New York Times. “This is an issue of identity theft – my identity was used so employees could meet sales goals. This is something that needs to be litigated in a public forum.” Zeleny said it would have been impossible for her to agree to arbitration when the account was opened without her knowledge or consent. Lawyers for the bank have argued that arbitration clauses included in the legitimate contracts customers signed to open bank accounts also cover disputes related to the false ones set up using their names. Sen. Sherrod Brown (D-Ohio) has introduced legislation to prevent Wells Fargo from forcing arbitration in the sham account cases, but in the meantime judges have ruled in favor of the bank, forcing arbitration. The bank said it is using arbitration as a last resort. “We want to make sure that no Wells Fargo customer loses a single penny because of the issues,” the bank said in a statement.