Brown Criticizes Wells Fargo's Refusal to Let Cheated Customers Seek Justice in Court

WASHINGTON, D.C. — U.S. Sen. Sherrod Brown (D-OH) today issued the following statement after Wells Fargo Chief Executive John Stumpf said the bank would continue to use forced arbitration clauses on legitimate accounts to block customers from seeking access to courts for harm caused by fraudulent accounts. Stumpf’s comments came during his testimony before the House Financial Services Committee on Wells Fargo’s unauthorized accounts scandal.

“If Wells Fargo were serious about making its customers whole, then it would allow the people who were cheated to have their day in court,” said Brown, ranking member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs. “I hope the bank’s answers to the dozens of outstanding questions will reflect better judgment. It is unacceptable that we still don’t know how long Wells Fargo continued this fraud, how many customers were harmed, or how many low-paid employees were fired because they didn’t meet excessive sales goals.”

During testimony before the Banking Committee last week, Stumpf declined to answer Brown’s questions on whether Wells Fargo would set aside mandatory arbitration agreements that bar customers from suing the bank. Brown and several of his Senate colleagues have continued to press Wells Fargo to end its use of this unfair practice.

Arbitration clauses force consumers to waive their rights to bring a claim in court or to band together in a class action, before any dispute has arisen. These clauses also deny access to the courts even when consumers are seeking to enforce their rights under fundamental state and federal laws.

Yesterday, Brown and his fellow Democrats on the Banking Committee asked Stumpf to answer a series of 58 questions, including almost two dozen that he was unable to answer or for which he promised to provide more detailed information. The Senators requested specific information on the timeframe and scope of wrongdoing at Wells Fargo, state-by-state data for affected customers, the bank’s executive compensation policies and aggressive sales culture, and the firm’s plans for restoring the credit scores of affected customers.

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