Another state sues Wells Fargo

The fallout from the megabank's fake-accounts scandal continues

By Ryan Smith

17 Aug 2018

Those who haven’t already lost track can add another lawsuit to the growing list of actions taken against Wells Fargo.

New Mexico Attorney General Hector Balderas has announced that his office’s Consumer and Environmental Protection Division has filed a lawsuit against the megabank for illegal business practices. The New Mexico Attorney General’s Office said that Wells Fargo had opened unauthorized accounts in the names of thousands of New Mexicans.

The complaint alleges that Wells Fargo violated state law by opening accounts without consumer authorization, enrolling customers in unauthorized products and lying to customers about the status of their relationship with the bank.

“By the company’s own public statements, it is estimated that more than 20,000 New Mexico accounts may have been opened without authorization,” the Attorney General’s Office said in a statement.

“As the fiscal agent for the state, and a provider of banking services to thousands of New Mexicans, Wells Fargo has failed to resolve their violations of law,” Balderas said. “It’s deeply troubling that a company with this much at stake in our state would mislead New Mexico consumers and allow unlawful profiteering. We look forward to seeking justice in a court of law.”

Any funds recovered by the lawsuit will be directed toward increasing financial literacy for students and at-risk families, according to the Attorney General’s Office.