Wells Fargo to pay $65 million to New York over cross-selling
Wells Fargo will pay a $65 million penalty to New York related to practices of cross-selling products, Attorney General Barbara Underwood said Monday.
“The misconduct at Wells Fargo was widespread across the bank and at every level of management — impacting both customers and investors who were misled,” Underwood said in a news release.
The bank failed to disclose to investors that the success of its cross-selling — that is, pitching additional financial products to existing clients — was built on “sales practice misconduct at the bank,” Underwood said.
Since Wells' problems began to surface a little over two years ago, it has disclosed that as many as 3.5 million accounts were opened without customers’ permission. Wells also has experienced problems involving abuses in its mortgage and auto lending operations, the repossession of service members’ cars, a wealth management probe and refunds for add-on products including pet insurance,among other issues.