BP#10 Wells Fargo Rips People Off Again

Wells Fargo is a large banking company, that has been under scrutiny for a while now.  Recently Wells Fargo had to pay $50 million to settle a lawsuit with thousands of homeowners.  This lawsuit, “accused the bank of overcharging hundreds of thousands of homeowners for appraisals ordered after the homeowners defaulted on their mortgage loans.” Wells Fargo has since sent out money (about $120 a person) to over 250,000 people nationwide affected by Wells Fargo’s actions.  Several homeowners attempted to file lawsuits against Wells Fargo from 2010-2012 for their actions, but many were unsuccessful.  Wells Fargo still disagrees with these statements made by hundreds of thousands of people, but agreed to dish out $50 million to avoid any more further conflict.  This isn’t the only thing that this multi-billion-dollar bank has been under scrutiny for.  Another case against them is that the bank was having employees open up bank cards and credit card accounts for millions of customers without the customer’s permission.  This action cost the bank about $200 million, but also denies these claims as well.

These actions done by Wells Fargo remind me of Plato’s story The Ring of Gyges.  In this story the moral is; given the opportunity to be unjust every man would do so.  Wells Fargo, being a multi-billion-dollar company, wears the Ring of Gyges in this case.  They are practicing unfair business practices to try and make even more money than they already make.  Even though they deny both claims provided above, they wouldn’t pay out hundreds of millions of dollars if they weren’t guilty of something unjust.  Wells Fargo knew that they could have their employees take advantage of their customers by simply; creating a credit card in their name, setting up a banking card, or by overcharging for appraisals ordered after the homeowners defaulted on their mortgage loans.  The problem with big businesses is that they tend to become more corrupt as they grow.  Not many small businesses are corrupt because they don’t have the financial stability and power to get away with these corrupt actions like a big company like Wells Fargo does.  With more money comes more power and more opportunity to do wrong.  In Wells Fargo’s case, they have the money and power to get away with just about anything with very little consequences, so given the opportunity to be unjust they will and have shown proof of this as well.

 

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