Navajo Nation Sues Wells Fargo for Fraudulent Practices

Navajo Nation Attorney General Ethel Branch filed a lawsuit in federal court on Tuesday against Wells Fargo alleging the embattled bank defrauded hundreds of Navajo elders, youth, and other vulnerable populations by opening unauthorized bank accounts. The tribe is suing the bank for $50 million in damages related to the fraudulent activity through the Equal Credit Opportunity Act, the Consumer Financial Protection Act, the Electronic Funds Transfer Act, and the Truth in Lending Act.

The tribe’s complaint reads like the similar scandal that has engulfed the bank for the past 2 years. It notes that: “For years, Wells Fargo created unauthorized bank accounts; activated unauthorized debit cards; pressured, cajoled and deceived Navajo elders; and enrolled Navajo customers in online banking services without authorization.”

Last year, an LA Times piece chronicled how thousands of Wells Fargo employees colluded to open millions of unauthorized bank accounts and credit cards for customers. That story led to a massive, multi-jurisdiction investigation that resulted in the firing of more than 5,000 employees at the bank and a fine of $185 million.

The handling of the investigation into the bank’s fraudulent business practices would become a proxy in the war between Republicans and Democrats in Congress over the power and role of one of the federal investigators, the Consumer Financial Protection Bureau (CFPB). Staff at the House Financial Services Committee would later write a report detailing the CFPB’s supposed ineptitude during the Wells Fargo investigation, with the committee even considering holding former CFPB director Richard Cordray in contempt.

Releasing a statement about the suit, Navajo Attorney General Branch said, “Wells Fargo must be held accountable for its unfair and unlawful practices directed toward the Navajo people. Among their other despicable acts, the bank specifically targeted our most vulnerable population – our elders.”