The perpetrators use networks of bogus web sites, social media, and e-commerce technology to trick users into ordering “free trials” of supposedly celebrity-endorsed products, only to find they’ve unknowingly signed up to receive regular shipments for which they’re automatically charged on a monthly basis.
“Wells Fargo’s customers were ripped off twice,” said Richard Holober, Executive Director of Consumer Federation of California. “First, the bank created two million fraudulent accounts. Then when consumers tried to sue, the bank forced them into company-dominated arbitration hearings. SB 33 will guarantee that the victims of a bank’s identity theft will get their day in court.”
Legislative deliberations continued Tuesday over a bill that seeks to prevent financial institutions accused of defrauding their customers from pulling legal disputes out of the state court system and into private arbitration.
[Senate Bill 33] would help victims of fraud committed by their financial institution after thousands of Americans fell victim to a Wells Fargo scandal.
After receiving several complaints from consumer groups, the state of California looked at creating a new bill aimed at protecting children’s privacy…from their toys.