Senator: Give Customers their Day in Court
Brown cited multiple examples that demonstrate
Brown pressed Sloan on
Brown pointed out that forced arbitration favors banks, putting customers at a disadvantage when seeking justice. In fact, despite the fact that
Brown also said that because the arbitration proceedings are private, they allow fraud that may have otherwise been brought to light through the court system to continue in secret.
"Forced arbitration always gives the advantage to the bank, and you are continuing to use forced arbitration to take advantage of your customers. Why should we believe you are committed to changing your practices and being fair to customers when you continue to use closed-door arbitration practices that deny customers their day in court?" Brown questioned Sloan.
As the CEO side-stepped Brown's question, the Senator interrupted, "Give customers their day in court."
Go to: https://www.brown.senate.gov/download/wells-fargo-2017-hearing-question-1 for production-quality video of Brown's questions.
Brown is leading legislation in the
Tomorrow, Brown will question former Chairman and CEO of
Brown's complete opening remarks, as prepared for delivery, follow.
Video of Brown's complete opening statement is available here https://www.brown.senate.gov/download/wells-fargo-full-opening-statement.
Thank you Chairman Crapo for holding this hearing.
A year ago, then-
In written follow-up questions for the record, Committee Democrats asked
On
We have learned over the past year that the problems at
Before being forced to come clean by a multi-agency investigation,
It subjected customers to forced arbitration, preventing them from their day in court, further concealing the fraud. Employees who tried to alert senior management to the treatment of
In 2013, a
In 2015, another customer in
Has the company changed? Just two months ago,
In August of this year,
The bank was aware of the problems in its auto loan division in
Mind you, this was not a casual response to a question that caught somebody off guard in a hearing, but a written response that undoubtedly was approved by lawyers and others at the bank. Maybe even you,
A week after last year's hearing, the Board of Directors initiated its independent review of the company's sales practices. The report to the Board, whose members are paid an average of
That is cold comfort to the thousands of employees--who make perhaps one-tenth of what the Board does--who were fired for failing to generate enough new accounts.
The Board also chose to limit the scope of the review to the
The changes
In light of the millions of Americans defrauded by
We need strong rules to guard against abuses in forced arbitration, payday lending, debt collection, mortgage servicing, and credit reporting accuracy.
Rather than working to roll back consumer protections, we should be supporting the
Thank you
Read this original document at: https://www.brown.senate.gov/newsroom/press/release/brown-says-wells-fargo-has-not-done-enough-to-earn-back-customer-trust
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