Page 2 October 20, 2016 TORRANCE TRIBUNE Credit Unions Stand to Gain from Wells Fargo’s Misdeeds By Rob McCarthy If South Bay credit unions are busier than usual, they have Wells Fargo Bank to thank. Credit union membership grows every time that a U.S. bank causes a scandal, and the latest uproar involving Wells Fargo is a whopper. It’s more explosive than when Bank of America wanted to charge customers a fee every time “Credit union membership grows every time that a U.S. bank causes a scandal, and the latest uproar involving Wells Fargo is a whopper.” they made a debit-card purchase. Or when large banks received billions in federal bailout money during the Great Recession, then paid their top executives bonuses. Wells Fargo account representatives since 2005 opened 1.5 million unauthorized customer accounts, a revelation that is bringing down a firestorm on the nation’s third-largest bank. Customers are furious about the identity fraud committed against them by their own bank, and they are scrambling to locate any accounts or credit cards opened by Wells Fargo without their knowledge. Wells Fargo’s illegal sales practices and identify fraud represent the latest in a string of violations of the public’s trust by banks, says Dan Berger, the head of the National Association of Federal Credit Unions. “To open more than 1.5 million likely unauthorized deposit accounts and more than 500,000 credit card accounts is despicable, and it’s flat-out fraud,” said Berger, who is chief executive officer of the organization representing the member-owned financial institutions. “Did the banks not learn anything from the financial crisis they caused?” he added. Credit unions membership has swelled since 2011, according to the industry. The growth cycle began when Bank of America announced plans to charge customers a $5 fee for every debit-card purchase. The Occupy Wall Street movement also demonstrated outside big banks, accusing them of unfair practices and profiting from the nation’s economic recession. One in three Americans belongs to a credit union, which are popular with young adults between ages 18 and 29. Even though the banks do a better job with smartphone apps and other technology, millennials as they’re called are, joining credit unions, which has pushed national membership over the 100-million mark for the first time. Millennials “like a cause and being part of something bigger than themselves,” Berger said. “They like the individuality, like the credit union movement.” Credit unions benefit when the public believes that big-name banks are ripping them off. Bloomberg News predicts the Wells Fargo scam “could help make 2016 a banner year” for the nonprofit credit unions, which replaced the trusted building and loan made famous in “It’s a Wonderful Life.” One member’s savings becomes another member’s loan - that’s how it works. The reality for the affected customers of Wells Fargo is they cannot sue the bank, either individually or in a class-action lawsuit, for the massive fraud it committed. Customers who opened checking and savings accounts with the bank signed agreements that took away their right to sue. They can take their claims of fraud to arbitration. Arbitration is rarely used and consumers almost never win, financial observers say. “Most of these contracts make it so that we are agreeing to forfeit our rights to file lawsuits against the organization. Not only that, but they often include provisions that outlaw class arbitration,” said a recent Bloomberg News article about the fine print contained in the Wells Fargo customer agreements. Sen. Elizabeth Warren and members of Congress have tongue-lashed Wells Fargo’s top executive for a lack of accountability for the massive fraud. CEO John Stumpf resigned from his post last week after appearing before congressional committees investigating the consumer fraud. Members of Congress were incredulous that not a single bank executive had been fired or asked to resign. The bank fired 5,300 employees who upper management says were involved. The unauthorized accounts generated huge fees and profits for San Francisco-based Wells Fargo. The bank, since the fraud was discovered, has pledged to make customers whole by returning any fees they were charged. Some former employees say they opened as many as eight accounts per customer, and they faked personal information to avoid detection. Not only were individuals targeted, but 10,000 business accounts were defrauded by employees who say they were under tremendous pressure from management to meet their sales goals. One widely read financial-news outlet questioned why consumers would do business with banks that have been identified as perpetrators of recent frauds. The report pointed to the 2007 financial crisis, the housing bubble, a LIBOR scandal, and even one Asian bank that got caught laundering money for cartels. “Frankly, it’s amazing anyone opens accounts with these institutions anymore,” Bloomberg News reported. “People probably feel that if they do get screwed or scammed, that they would have some sort of legal recourse. That would only make sense.” U.S. Sen. Sherrod Brown of Ohio plans to introduce a bill in Congress next month to restore customers’ rights to sue Wells Fargo and other banks that include arbitration clauses in their customer agreements. • Police Reports Auto Theft-All 10/8/2016 10:00 PM 2500 BLOCK 235TH ST Stolen vehicle: ‘95 HondaAccord Theft 10/8/2016 9:30:00 PM 2400 BLOCK 227TH ST Suspect(s) defeats laundry room padlock and door lock for entry, torches laundry machine coin boxes; unknown if loss Vandalism 10/8/2016 7:10:00 PM 3500 BLOCK CARSON ST Suspect(s) scratches victim’s vehicle’s paint Theft 10/8/2016 2:30:00 PM 300 BLOCK PASEO DE LA PLAYA Suspect(s) takes victim’s unattended property; backpack Vandalism 10/8/2016 1:21:49 PM 100 BLOCK PALOS VERDES BLVD Suspect(s) tags parking garage walls Burglary-Auto 10/8/2016 12:39:05 PM 21400 BLOCK HAWTHORNE BLVD Suspect(s) enters vehicle by unknown means and takes property; laptop, CD player/stereo, vehicle battery Burglary-Auto 10/8/2016 9:47:00 AM 3700 BLOCK 182ND ST Suspect(s) takes property from unlocked vehicle/ remote Burglary-Residential 10/8/2016 8:49 AM 3700 BLOCK 176TH ST Suspect(s) pries open sliding glass door, ransacks and takes property; speaker, tablet, game console, controllers, credit cards, IDs, cash Theft 10/8/2016 6:45:00 AM 2400 BLOCK 227TH ST Suspect(s) forces open parking garage storage locker and takes property/ scale, camcorders, bowling ball Auto Theft-All 10/8/2016 4:15 AM 1800 BLOCK 190TH ST Stolen vehicle: ‘07 KTM M/C Auto Theft-All 10/8/2016 12:27 AM 1800 BLOCK 190TH ST Stolen vehicle: ‘14 Ford P/U Vandalism 10/8/2016 12:01:00 AM 3300 BLOCK CIVIC CENTER DR Suspect(s) scratches victim’s vehicle’s paint Burglary-Auto 10/7/2016 11:00:00 PM 16900 BLOCK CRENSHAW BLVD Suspect(s) enters possibly unlocked vehicle, ransacks and takes property; cell phone, ice cream maker Burglary-Auto 10/7/2016 7:30:00 PM 16600 BLOCK CRENSHAW BLVD Suspect(s) smashes window for entry, ransacks and takes property; wallet Theft 10/7/2016 5:30:00 PM 21700 BLOCK HAWTHORNE BLVD Suspect(s) takes victim’s unattended property/ leather bag Burglary-Auto 10/7/2016 4:30:00 PM 17200 BLOCK DELIA AVE Suspect(s) enters possibly unlocked vehicle, ransacks and takes property/ tool bag, tools, file folder, brochures and a blank check Burglary-Auto 10/7/2016 4:10:00 PM 2700 BLOCK LOMITA BLVD Suspect(s) takes property from unlocked vehicle; purse Burglary-Auto 10/7/2016 4:00:00 PM 3600 BLOCK ARTESIA BLVD Suspect(s) enters unlocked vehicle and takes property; checkbook, sunglasses, mirror Battery-Simple 10/7/2016 12:50:00 PM 24400 BLOCK CRENSHAW BLVD Suspect grabs victim’s wrist, caresses her arm and neck Theft 10/7/2016 8:30:00 AM 4200 BLOCK SEPULVEDA BLVD Suspect(s) cuts lock securing property and takes same from parking garage; bicycle Burglary-Commercial 10/7/2016 1:14 AM 17400 BLOCK CRENSHAW BLVD Suspect(s) smashes glass door for entry, pries open registers; unknown if loss Burglary-Commercial 10/7/2016 12:27 AM 3900 BLOCK PACIFIC COAST HWY Suspect(s) smashes window for entry and takes property; safe Robbery-Weapon 10/6/2016 11:30:00 PM 17400 BLOCK HAWTHORNE BLVD Suspect demands victim’s property at gunpoint; keys, ID, jewelry, cash Theft 10/6/2016 10:30:00 PM 4200 BLOCK 182ND ST Suspect(s) takes property off of parked vehicle; mirror lens Burglary-Commercial 10/6/2016 10:12 PM 2100 BLOCK CARSON ST Suspect(s) enters location by unknown means, forces open interior doors, ransacks and takes property; cash, Vandalism 10/6/2016 10:00:00 PM 1700 BLOCK CABRILLO AVE Suspect(s) uses spray paint to tag victim’s vehicle Burglary-Auto 10/6/2016 6:00:00 PM AINSWORTH AVE & 168TH ST Suspect(s) smashes window for entry and takes property; tablet Theft 10/6/2016 5:38 PM 3500 BLOCK CARSON ST Suspect(s) takes property off of vehicle; license plate Battery-Simple 10/6/2016 3:38:40 PM 23100 BLOCK ARLINGTON AVE Suspect pushes victim in the chest Burglary-Auto 10/6/2016 2:00:00 PM 3400 BLOCK ARTESIA BLVD Suspect(s) forces window for entry, ransacks glove compartment; unknown if loss at time of report Theft 10/6/2016 5:30:00 AM 2600 BLOCK PACIFIC COAST HWY Suspect(s) takes unattended property from bench; cell phone Vandalism 10/6/2016 17100 BLOCK EASTWOOD AVE Suspect(s) uses spray paint to tag vehicle and wall Burglary-Residential 10/5/2016 11:00:00 PM 1900 BLOCK PLAZA DEL AMO Suspect(s) pries open garage door for entry; no loss Auto Theft-All 10/5/2016 8:26 PM 21500 BLOCK WESTERN AVE Stolen vehicle: ‘97 Honda Accord Burglary-Auto 10/5/2016 8:00:00 PM 600 BLOCK AMAPOLA AVE Suspect(s) enters vehicle by unknown means and takes property/ handgun, holster, flashlight, baton Burglary-Auto 10/5/2016 6:00:00 PM 2400 BLOCK GRAMERCY AVE Suspect(s) punches door lock for entry, ransacks and takes property; GPS/stereo Auto Theft-All 10/5/2016 3:32 PM 21700 BLOCK WESTERN AVE Stolen vehicle: ‘90 trailer Theft 10/5/2016 3:30:00 PM 22000 BLOCK HAWTHORNE BLVD Suspect(s) takes property of off vehicle; license plate Theft 10/5/2016 2:00:00 PM 3600 BLOCK 182ND ST Suspect(s) takes property left in restroom; cell phone Theft 10/5/2016 11:49 AM 18800 BLOCK VAN NESS AVE Suspect(s) takes property off of parked vehicle; wheels, tires Theft 10/5/2016 11:00:00 AM 3800 BLOCK 171ST ST Suspect(s) takes property off of front porch; delivered parcel Theft 10/5/2016 7:00:00 AM 24400 BLOCK CRENSHAW BLVD Suspect(s) takes property off of parked vehicle; tailgate Burglary-Auto 10/4/2016 8:00:00 PM 3300 BLOCK LOMITA BLVD Suspect(s) takes unsecured property from bed of truck; toolbox, tools, floor cleaner Burglary-Residential 10/4/2016 2:45:00 PM 1700 BLOCK GREENWOOD AVE Suspect(s) kicks in front door for entry, ransacks; no loss Auto Theft-All 10/4/2016 1:21 PM 20600 BLOCK HAWTHORNE BLVD Stolen vehicle: ‘16 Chrysler 300 Auto Theft-All 10/4/2016 1:00:00 AM 17800 BLOCK GRAMERCY PL Stolen vehicle: ‘00 Honda Civic • Visit us online: www.heraldpublications.com
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