The same day, Stumpf appeared on CNBC, where he rebuffed suggestions that he resign. The CFPB said the bank imposed the goals on its staff because it "sought to distinguish itself in the marketplace as a leader in 'cross-selling' banking products and services to its existing customers." Read our story from the time. 1, 2017.Īccording to the Los Angeles City Attorney, employees were opening and funding accounts without customers' permission or knowledge in order to "satisfy sales goals and earn financial rewards under the bank's incentive-compensation program." The bank announced that it would be ending its controversial employee sales goals program that was at the center of the allegations effective Jan.
The alleged misconduct was revealed when the Consumer Financial Protection Bureau (CFPB), the Los Angeles City Attorney and the Office of the Comptroller of the Currency (OCC) fined the bank $185 million, alleging that more than 2 million bank accounts or credit cards were opened or applied for without customers' knowledge or permission between May 2011 and July 2015.Ī bank official acknowledged that it had terminated some 5,300 employees, roughly 1 percent of the workforce, in relation to the allegations, and the bank issued a statement saying, "We regret and take responsibility for any instances where customers may have received a product that they did not request." Read our story from the time, or see how the scandal affects customers.