• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Banking issues and scams are on the rise, leaving customers facing an uphill battle for help
Editor's Pick

Banking issues and scams are on the rise, leaving customers facing an uphill battle for help

by August 14, 2023
by August 14, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

About a week ago, an unknown number of Wells Fargo customers were suddenly unable to withdraw money from their bank accounts.

Even as it sought to address the issue, which customers first began noticing on Aug. 3, Wells Fargo acknowledged a ‘limited’ number of customers were still having difficulty 24 hours later, leaving some of them unable to withdraw funds for critical needs.

For Wells Fargo, it was the second time this year that such a problem had occurred. The bank declined to comment when NBC News reached out for an explanation of the exact cause and scope of the issue.

More recently, further investigation found that third-party impostors had created fraudulent accounts at Wells Fargo, for which the bank denied any wrongdoing and said the problem was widespread across the financial services industry.

At least one other bank has also left customers scrambling to withdraw their money after an outage of unknown origin. Some depositors with Green Dot Bank, which works with Walmart among other third parties to provide financial services, said they could not get money out of their accounts for days or even weeks.

The difficulties that Wells Fargo and Green Dot customers encountered reflect a dramatic increase in complaints about financial service companies in recent years.

All categories of complaints have increased since the pandemic, though the Consumer Financial Protection Bureau has focused on the increase in complaints about credit-rating firms. In one of those reports, the agency noted that ‘many consumers did not receive a substantive response to their initial complaints’ made to such firms.

‘These non-substantive responses can increase the total number of complaints when dissatisfied consumers submit a subsequent complaint with the hope that their original issue will be addressed,’ according to the CFPB report.

At the same time, The Associated Press reports that more people have lost more money to scammers than ever before — with reported consumer losses to fraud totaling $8.8 billion in 2022, a 30% jump compared with 2021.

Hello? Is anybody there?

In general, it has never been more difficult for customers to get a timely response from their financial institutions, experts said.

‘It’s really tough for customers these days,’ said Ira Rheingold, executive director of the National Association of Consumer Advocates.

It’s a harsh reality that has only hardened in recent years. Companies are increasingly turning to a business model focused on waiting for customers with issues to go away, said Greg McBride, senior vice president and chief financial analyst at Bankrate.

‘It’s the continual push to cut costs,’ McBride said. ‘Customer service is seen as a cost center, as opposed to a revenue enhancer. And companies can get away with it.’

In a statement, Wells Fargo said it puts customers first.

‘We take customer complaints very seriously and when issues are raised, we act quickly to resolve them,’ the company said, adding that the overall volume of customer complaints it received directly was ‘down considerably since 2019.’

A Green Dot representative said in a statement that the institution was ‘focused on completing our technology conversions and working through and resolving any service interruptions as quickly as possible.’

Even in extreme circumstances in which customers consider taking legal action against their financial institutions, they usually come up against a harsh reality: the forced-arbitration clause, which customers typically sign at the time they open an account. That provision requires customers to submit any dispute they have with the bank to a private arbitrator, who is often selected by the company.

Created in 2011 to resolve customer disputes with banking and financial firms, the CFPB can intervene for individuals and groups, but results can take time.

The CFPB said that between October 1, 2021, and September 30, 2022, it sent approximately 745,400 customer complaints to companies for review and response, and that companies responded to approximately 99% of them, but it can take a company more than two weeks to respond.

Since its inception, the CFPB has sent 4 million complaints to companies on behalf of consumers and obtained $17.5 billion in financial compensation for them, according to July 2023 data from the agency.

Rheingold said turning to the news media can also prove effective in getting a response. But these days it is more likely to be a local TV station than a newspaper, whose numbers have dwindled in both size and scope.

In general, a good rule of thumb to maximize the odds of a timely response is to become the proverbial squeaky wheel, Rheingold said.

‘Be loud, be annoyed,’ he said. ‘Threaten to move your business or your money.’

This post appeared first on NBC NEWS
You Might Also Like
  • Trump commutes sentence of Ozy Media founder Carlos Watson
  • RTX, GE Aerospace expect more than $1 billion tariff impact
  • What CEOs talked about in Q4/2022
  • Walmart is laying off and relocating hundreds of corporate workers
Share
0
FacebookTwitterPinterestWhatsapp

previous post
White House reporter sues Karine Jean-Pierre after losing press pass
next post
Robert F. Kennedy Jr. says he misunderstood abortion question, does not support any federal ban

You may also like

Bitcoin prices hit all-time high, soaring to nearly $69,000

March 7, 2024

Red Lobster files for bankruptcy, but restaurants will stay open

May 21, 2024

Amazon workers must return to office full time, CEO says

September 17, 2024

Boeing taps aerospace veteran Ortberg to replace Dave Calhoun as...

July 31, 2024

Chipotle to expand to Mexico amid Trump trade war with...

April 22, 2025

Target unveils new items costing $10 or less — and...

February 19, 2024

A California bill would let workers ignore their bosses during...

April 5, 2024

Consumers are starting to feel better about the U.S. economy

July 15, 2023

Amazon taps Whole Foods CEO to oversee grocery business

January 28, 2025

Amazon makes first foray into live news with election night...

October 18, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Boeing warns new defect on 787...

    June 8, 2023

    How a U.S. debt default would...

    May 5, 2023

    OpenAI employees threaten to quit en...

    November 21, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here