Credit union opening accounts members don't want/request. Lying to open them so the branch meets goals. Is this worth reporting?
I've been in banking (big banks) for 10 years and this is my first credit union so this is a crazy experience for me and I'm not sure if what they are doing is wrong/illegal and worth reporting to NCUA and CFPB.
Employees are encouraged to open additional accounts by making it sound like certain accounts automatically come with the account the member actually wanted, even though they are separate products and the member does not necessarily have to open them. One example, a member may come in wanting a checking account, and the employees will lie to them that another account “comes with it." This makes the member believe it is required when it really isn't. Market managers will straight up tell us to tell members it's a "package" and they leave with 4 accounts when they just asked for 2.
We also have situations where additional loan applications are submitted without the member clearly asking for or approving those specific applications. They may apply for a HELOC and a separate app gets submitted for a credit card they didn't ask for. I know banks can cross sell, but I'm not sure if doing an application without approval from the member is wrong? We lost a HELOC last week because the member was told "Congrats! We also go you approved for a $15,000 credit card! The member didn't want it and the manager was PUSHING my colleague to do everything she could to force the member to get the credit card. The member said "No." and the manager said it didn't matter, find a way.
Another issue is with credit cards. Members aren't always told what credit limit is being requested on their application, and in some cases they don't find out what limit they're being approved for until after their credit has already been pulled and the card has already been approved and opened. Essentially, the member may think they're simply applying for a low limit credit card, without fully understanding the amount being requested or what exactly is being submitted on their behalf. We are told to submit for the max every time and we never ask the member what limits they way, every application is submitted for the max (15k). One older lady explicitly stated she didn't want that much, but the account was already opened and the card was being handed to her as she said that. Nothing was done/changed. And she was an older lady, like 80 years old with a 15k limit??? It's so predatory imo...
What bothers me most is that these practices are 100% driven by sales goals, where the focus is on getting additional products and applications rather than making sure the member fully understands and actually wants what they're being signed up for.
This feels very Wells Fargo to me. But I'm not sure if I'm overreacting?? Is this worth reporting? It feels so fucking scammy...
So sorry it's so long!