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Wells Fargo (WFC) Faces Probe for Closing Authentic Accounts

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Wells Fargo & Company (WFC - Free Report) is in trouble once again for causing inconvenience to its customers by closing authentic bank accounts and making their funds inaccessible. The Consumer Financial Protection Bureau is currently investigating the matter.

Per an article by Reuters, customers have complained of fraudulent deposits whose origin cannot be identified. Some claimed that their identities were stolen and their accounts were closed by the bank. Further, Wells Fargo not only refused to reopen those accounts but also did not allow them to open new ones.

Another customer complained of an account closure when a hacker changed the personal information after which the bank transferred funds to the wrong address.

All the complaints reflect customers’ distress for not being able to access money and frustration for not getting support from the bank’s helpdesk.

Due to a rise in scams lately, the banks have become cautious of suspicious activities. Further, regulators such as the U.S. Treasury Departmentare putting pressure on banks to abolish fraud and other financial crimes.

Thus, these improper account closures may either be an outcome of Wells Fargo’s zeal to protect customers from fraud or a thorough review of the operations after the fake accounts scandal was disclosed last year.

Wells Fargo is currently facing a lot of hardships on account of a multitude of pending investigations and lawsuits filed against the bank. This has not only hurt its reputation but also kept its financials under pressure.

Shares of Wells Fargo have lost 11.5% compared with 2.5% decline for the industry.

Currently, the stock carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the finance space are Washington Federal, Inc. (WAFD - Free Report) , Carolina Financial Corporation (CARO - Free Report) and Comerica Incorporated (CMA - Free Report) .

Washington Federal’s Zacks Consensus Estimate witnessed an upward revision of nearly 1% for current-year earnings, over the past 60 days. Also, its shares have gained 20.9%, in the past year. The company has a Zacks Rank #2 (Buy).

Carolina Financial witnessed an upward earnings estimate revision of 8.9% for the current year, over the last 60 days. Its share price has increased 56.4% in the past 12 months. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Comerica carries a Zacks Rank #2. For current-year earnings, its Zacks Consensus Estimate was revised 3.1% upward in the last 60 days. The company’s share price has increased 51.6% in a year’s time.

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