Wells Fargo Sued for Alleged Fraudulent Behavior

The City of Los Angeles claims in a lawsuit that Wells Fargo "victimized" customers with illegal bank tactics, opening up unauthorized bank accounts in order to meet sales quotas.
2:35 | 05/05/15

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Transcript for Wells Fargo Sued for Alleged Fraudulent Behavior
We allege that in its push for growth. Wells Fargo often elevated its profits. Over the legal rights of its customers. Our complaint alleges the following things. It alleges that wells customers have been victimized. By tactics designed to maintain high levels of sales. Of wells products. Well business model relies on these sales quotas. That are under realistic. And naturally and predictably. Drove its employees we allege. To engage in conduct that includes. Opening. New customer accounts B day savings or checking or credit card accounts. Without customers' authorization. If you noted wells response to the filing of this lawsuit. Wells appears to acknowledge the problem. But attributes the problem. To rogue employees. But I want to point out a couple key aspects of our lawsuit. First of all we allege that would ever steps wells ostensibly took to rectify the problem were insufficient. And secondly and very importantly. We allege that wells failed to inform its customers the consumers whose interest are at stake here. That their data had been as we allege misused. That's a key. State and federal law requires that wells not misuse. Personal information. And it also requires a big business like wells if they discover that personal data it has been misused. It requires them to a prize those. Whose information has been misused. I want to also pointing out another feature of what wells response has been. If you note. And I'll paraphrase that wells response boils down to we only provide to our customers services or products from which they will benefit. You note that they do not saying we only provide those services or products that our customers have asked for. And that is at the core of our allegations in this complaint this morning.

This transcript has been automatically generated and may not be 100% accurate.

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