Hundreds and hundreds of Wells and Fargo workers were accused of creating false financial records and accounts using the name of their unsuspecting customers. They committed this heinous crime in order to push to fulfill their grueling inner sales targets. Despite such malpractices growing to be more common as the days go by, bank charges have continually risen, depleting at a fast rate, their customers’ balances. Despite such gross inconsistencies, these banks never get the attention of the authorities. Only small-time payday lenders rendering services like e payday loans that actually help people in need, end up facing the music for not being as prestigious as the traditional banks.
When the factor of how the people of America view these banks, what the general opinion is regarding these traditional banks, it was discovered that many organizations seem to have deteriorating relationships with their customers. Some banks have it worse than others. This was found conferring to an original study of consumer complaints mailed at the federal Consumer Finance Protection Bureau. The main wrongdoer found after analyzing the number of grievances for every billion in deposits, was a local bank that does not have much popularity except for in the Midwest – a subsidiary of a nationwide bank holding corporation located in Wayzata, Minnesota – TCF Bank. The bank registered approximately 12.3 complaints per one billion in deposits. This was the highest number recorded by any bank in 2016. Nate Matherson, the joint-founder and Chief Executive Officer of LendEDU, an internet based market for student loans and credit refinancing, was responsible for leading the analysis of the data given by the Consumer Finance Protection Bureau. He expressed his shock at discovering that a regional bank held the record for most number of complaints saying that he and his team were a hundred percent certain that Wells and Fargo would be topping that list, given the scandal, but they were not.
A spokesman for TCF said that they disagreed with the procedure of this study because according to them, the analysis did not factor in the different kinds of transaction accounts along with the mixture of trade against commercial financial records amongst the different economic organizations. They further said that the analyzation inflated the ratio of grievances for a bank like theirs which recorded a bigger number of transaction accounts comparative to counterparts with comparable deposit sizes. They also went on to complain that many of their peers also had a larger concentration of commercial deposits than they did. Clarifying their position, TCF gave assurances by saying it treated all customer complaints and grievances in a serious manner. They said they are always aiming to resolve them as quickly as possible.
Looking at the brighter side, the study discovered that 12 banks that, astonishingly, hadn’t registered even on customer complaint in the year of 2016. This result was mind-boggling and completely unexpected. All of these banks turned out to be regional lenders. Silicon Valley’s SVB Financial Group and Arkansas’ Home BankShares were part of this elite group.
Here are the top five banks that registered the most number of complaints about every 1 billion dollars under deposit.
- TCF National Bank – Earning a disgraceful 12.3 complaints, this Minnesota Bank came under the limelight for all the wrong reasons.
- Citigroup – 8.58, a shamefully high number for an age-old institution.
- Wells and Fargo earned the number 8 for the scandal it went through.
- SunTrust Banks – 7.67
- Bank of America – 7.24
The one thing that can be taken away from this is that the big names in banking cannot be always trusted. No matter how badly the CFPB wants to eradicate payday lenders providing the masses with much-needed services like e payday loans, the public should know the truth.