The Three Biggest Lies Told by Wells Fargo CEO Tim Sloan During Today’s Senate Committee HearingOctober 03,2017
Washington, DC— Today, Wells Fargo CEO Tim Sloan sat in front of the Senate Committee on Banking, Housing and Urban Affairs and repeatedly lied about the corporation’s attempts to deny their customers’ rights to seek justice in court.
Wells Fargo’s consistent use of forced arbitration proves exactly why the Consumer Financial Protection Bureau’s (CFPB) forced arbitration rule is long overdue. Until the rule restoring customers’ rights to hold Wells Fargo and other banks accountable goes into effect, consumers will remain unable to hold banks publicly accountable in court.
The three biggest lies from Wells Fargo at today’s hearing
Lie #1: Wells Fargo CEO claims “we haven’t done that, we are not doing that” when asked whether they are using forced arbitration on fake accounts, denying the practice at least 4 times in congressional testimony during an exchange with Senator Tester.
- Just 2 weeks ago, Wells Fargo lawyers asked a federal court in Utah to force fake account victims into arbitration.
Lie #2: Wells Fargo CEO claims he’s “not familiar with the overdraft scandal” (41 minute mark)
- Wells Fargo is embroiled in litigation around the country, as recently as last month in the 11th circuit, where Wells Fargo lawyers are arguing to throw out cases in favor of secret arbitration proceedings. They are also actively forcing approximately 800,000 victims of their forced placed auto insurance scandal into arbitration.
Lie #3: Wells Fargo CEO claims “arbitration is better for consumers” (40:35 mark)
- Sen. Sherrod Brown references study demonstrating that the average Wells Fargo customer ends up owing the bank $11,000 in arbitration. (1 hour 54 minute mark)
“Wells Fargo is rightfully being held to account for denying the fundamental right of every Americans to seek justice in a court of law,” said American Association for Justice CEO Linda Lipsen. “Sloan clearly knows that forced arbitration is such an unpopular and unjust policy that he’s willing to lie to the U.S. Senate about it, trying to save whatever remains of Wells Fargo’s reputation.”