Wells Fargo’s (WFC) third quarter earnings finally answered some questions consumers had about exactly how the company would remedy the cross-sell scandal, in which the bank opened 2.1 million accounts without permission,
Though the stark number of new account openings—down a whopping amount—indicate much of the public currently sees the bank as a condemned building, Wells Fargo detailed its process of “making things right” with consumers affected by its misdeeds.
In its third quarter presentation, Wells Fargo said it is looking into how customers’ credit scores may have been affected by the 565,000 unwanted credit cards, and that it’s working with credit bureaus to expunge the fraudulent files and restore credit, or furnish the card connected to the account for the people who decided to keep their cards. In addition to that, the San Francisco-based bank will be looking into the indirect and more costly consequences of how the new accounts impacted consumers’ credit scores – for example, the effect it might have on a loan’s interest rate.
“For additional products obtained from Wells Fargo,” wrote the bank, “we are analyzing whether a reduction in their FICO score may have impacted the size of a line or affected the pricing that the customer received, and if so we will adjust the line size, reduce pricing and refund the overage.”
“Our intent is to err on the side of the customer and make it right,” said new Wells Fargo CEO Timothy Sloan in the conference call.
For customers who received loans not under Wells Fargo’s umbrella, the bank may still pay consumers the difference to fully square the damage.
“For products obtained from another financial services firm we will use our business model as a proxy to dimension estimated impact but we will work with customers on understanding their unique situation.”
Ethan Wolff-Mann is a writer at Yahoo Finance focusing on consumerism, tech, and personal finance. Follow him on Twitter @ewolffmann.