On October 3, 2017, Timothy Sloan, the CEO for Wells Fargo Bank testified before the Senate Banking Committee about the Wells Fargo Banking scandal. And once again, he proved that Wells Fargo is not only the poster child for bad behavior but they are the poster child for why we need forced arbitration reform.
While Wells Fargo has engaged in deliberate, illegal behavior, including the opening of fake bank accounts in customers’ names, charged for insurance they did not need on auto financing (resulting in at least 25,000 repossessions) and even setting up the way items were debited from checking accounts to maximize bounce fees; they in turn want to strip away the rights of the Americans they victimized to go to court.
Wells Fargo’s CEO claimed in his testimony before the Senate that Wells Fargo was not forcing customers into forced arbitration, when this is exactly what they are doing. If Wells Fargo has nothing to hide, why did its CEO lie to Congress? If Wells Fargo really wants to do right by its customers, why is it denying them their day in court?
If Congress fails to put a halt to the ability of big banks to use forced arbitration clauses, big banks will continue to abuse and steal from American consumers.