Wells Fargo Hit With Most Consumer Banking Complaints

complaints

by on April 9, 2013

Bank of America made headlines recently for fielding the most consumer complaints, based on the Consumer Financial Protection Bureau’s (CFPB) Consumer Complaint Database. A closer analysis, however, reveals that for everyday banking, Wells Fargo actually ranked worse – complaints about Wells Fargo banking products were 13% higher than those at Bank of America.

Wells Fargo received the most complaints for banking

Wells Fargo received nearly 20% of all complaints related to bank accounts or services, claiming the top spot for most complaints related to everyday banking.

Bank Complaints % of Total
Wells Fargo 2,875 19%
Bank of America 2,550 16%
JPMorgan Chase 1,676 11%
All Other 8,426 54%
Total 15,527

Checking accounts were by far the most problematic banking product at Wells Fargo (and in general at all banks), accounting for nearly 80% of banking complaints

Bank account or service Complaints % of Total
Checking account 12,223 79%
Savings account 1,054 7%
Certificate of deposit 970 6%
Other 1,280 8%
Total 15,527

In regards to checking accounts, banks ran into the most trouble when it came to account opening, closing, or management. “Deposits and withdrawals” was the second most common issue cited in checking account complaints.

Most banking complaints are resolved with some sort of relief or explanation, but some company responses are subsequently disputed

The majority (83%) of banking complaints are closed with the company providing either a detailed explanation or relief (monetary and otherwise) to the customer. However, customers dispute about 1 in 5 company responses.

Company Response Complaints % of Total Company Responses % of Responses Disputed
Closed with explanation 7,538 49% 25%
Closed with monetary relief 3,325 21% 10%
Closed without relief 1,990 13% 26%
Closed with non-monetary relief 2,013 13% 15%

What to do for consumers who are fed up with their banks?

The answer is to simply shop around for accounts and services that best fit individual banking needs. For customer service concerns, consumers should consider that local institutions like community banks and credit unions are more likely to provide individualized attention in the branch or over the phone.

It is also clear that big banks struggle to maintain checking accounts that meet customer needs. Local banks and credit unions are often better in this regard as well. Many offer a free checking account that requires no minimum balances to avoid a fee.

Source: CFPB Consumer Complaint Database

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