Wells Fargo is facing fresh outrage over its latest revelation of harm to customers, after the bank admitted last week that its error contributed to hundreds of people losing their homes to foreclosure.
In the disclosure, made in a filing with the Securities and Exchange Commission on Friday, Wells said its error caused more than 600 people in foreclosure to be incorrectly denied, or not offered, modifications to make home loans more affordable. Of that group, about 400 ultimately lost their homes, according to the bank, which apologized for the mistake.
There may be more victims. In its filing, Wells did not rule out uncovering additional problems, noting, “This effort to identify other instances in which customers may have experienced harm is ongoing, and it is possible that we may identify other areas of potential concern.”
The admission comes almost two years after a September 2016 sales scandal over unauthorized customer accounts, which stained the reputation of the San Francisco-based bank. The latest disclosure adds to the list of problematic practices Wells Fargo has admitted to since the sales scandal that have drawn the scrutiny of federal regulators.
