Bank Employees Faced Pressure to Utilize Unscrupulous Sales Tactics or Face Discipline, Termination at Wells Fargo and TD Bank

Due to changes in global financial markets, retail banking firms such as TD Bank, Wells Fargo, and others have faced pressure from shareholders to find new sources of revenue. A number of banks have apparently met this call by emphasizing the need for highly aggressive sales tactics by bank tellers, financial advisors, and other employees.  Tellers and customer service representatives who objected to selling customers products they didn’t need or who refused to up-sell when a more affordable and appropriate product existed were reportedly told to reconsider whether they were still a fit for the position.

When a scandal of this type rocked Wells Fargo Bank in 2016, more than 5,000 employees were terminated for their participation. In that instance, illegal tactics included opening accounts that customers did not want and did not ask for. However, reports also indicated that workers were fired for whistleblowing in regard to unethical or illegal practices.

In light of the still developing reports from Canada that TD Bank may have employed similar aggressive tactics, employees should take the time to educate themselves about how they can protect themselves when presented with a request to engage in unethical or illegal activities. Furthermore, employees of retail banking organizations should also understand and consider their legal options should they face retaliation for blowing the whistle on fraud or other illegal behavior.

Reports from Canada Indicates ‘Hundreds of Complaints’ Over Aggressive and Potentially Fraudulent Sales Tactics

In 2016, the public was shocked to learn about highly aggressive sales tactics at Wells Fargo Bank that crossed the line into outright fraud. Due to practices that included the creation of millions of fake accounts, U.S. regulators fined the bank nearly $200 million and required it to terminate involved employees.

While some analysts have cautioned that it is too soon to rush to judgment regarding the TD Bank revelations, some TD Bank employees have already gone public with their experiences. These employees claim they were subject to “incredible pressure” to meet unrealistic sales goals. At least some employees admit that they broke the law to the detriment of customers to meet sales goals. One teller admitted that he would “occasionally” unilaterally increase customers credit limits simply to earn points towards his sales goals. Other employees admitted to activating overdraft protection and adding other features and products to customer accounts without permission.

Reports also Detail Potential Fraud by TD Bank Financial Advisors

Unfortunately, reports regarding these alleged sales tactics are not limited to customer service representatives (tellers) and also include financial advisors. When asked about why financial advisors may resort to questionable or illegal tactics, one advisor referenced the Performance Improvement Plan she was placed under and remarked, “We do it because our jobs are at stake.” The advisor stated, “I have invested clients’ savings into funds which were not suitable, because of the SR [sales revenue] pressure. That’s very difficult to admit. I didn’t do this lightly.”  Other financial advisors admitted that they downplayed risks or other negatives associated with highly profitable products simply to make their sales goals.

How Can Financial Advisors and Bank Employees Protect Themselves Following Retaliation due to Whistleblowing?

While it is still too soon to draw conclusions regarding how widespread the practices by the bank are, employees who disclose fraud or other otherwise blow the whistle on illegal activities should understand how to protect themselves from retaliation, termination, and other negative consequences. To start, employees should recognize that any company lawyer or HR agent they may speak with represents the organization and does not necessarily have their best interests at heart. Therefore, it is wise to seek legal guidance before making a disclosure. However, in any case, it is important to recognize that anything you disclose to the company or its agents may be used as ammunition against you in later disciplinary actions or legal proceedings.

Furthermore, aside from certain laws encouraging whistleblowing and authorizing rewards for individuals who provide actionable information, there are a number of laws that may provide protection against retaliation. Sarbanes-Oxley (SOX), Dodd-Franks, and the regulatory guidance of the Consumer Financial Protection Bureau are but a few of the federal laws that may provide such protections. Employees should also consult with a lawyer to determine whether state law provides similar or additional protections. Employees who perform their due diligence prior to blowing the whistle are typically more prepared for the challenges that may arise throughout the process.

Work with a Strategic Lawyer When Blowing the Whistle as a Financial Advisor

If you are considering blowing the whistle on illegal or fraudulent acts, policies or practices by a bank, corporation, or other organization it is essential to engage in careful planning to avoid becoming collateral damage as the company scrambles to protect itself against your allegations. For decades, attorney William Heyman has represented financial advisors in employment disputes. To schedule a confidential consultation to discuss how to respond to potentially illegal employer requests or practices, call the Law Firm of William S. Heyman at (410) 305-9287 or contact the firm online.