Subprime Lending News 8/9/17:
More fake accounts from Wells Fargo, why college students can benefit from cosigning, and a credit card skimmer is thwarted in Ohio.
By Caroline Thompson
Wells Fargo looks into additional unauthorized accounts in wake of other scandals.
It’s not secret Wells Fargo has had a tough couple of months. Between being sued for predatory lending practices, making customers buy auto insurance they didn’t need, erroneously charging veterans illegal loan fees, and creating millions of fake accounts to boost internal numbers, it feels like the bank has been in the news every day for some new offense. Now it seems the fake account scandal is about to get a whole lot bigger. In order to fully flesh out this issue, the bank has agreed to expand their investigation by adding three more years of analysis and a new methodology, in the hopes of finding customers who were affected by these practices.
So far, Wells Fargo has refunded $3.26 million to victims of the fake accounts scandal, and that number is expected to rise as the investigation continues.
College students can benefit from cosigning on car loans.
Having a car in college can be a big help, especially if you go to a school with a big campus, or want to come home to do laundry and enjoy a heaping plate mom’s spaghetti every other weekend. However, it can be tough for many college students with little to no credit to get a loan for a car. Luckily, cosigning is an option, and it’s one that many experts recommend to help college kids build good credit and financial habits early. Having a parent, guardian, or trusted friend cosign a car loan for you can help you build credit, keep your interest rates down, and get used to the responsibility of paying a monthly bill on time. For more information on how to build credit and come back from bad credit, check out our recent blog post on secured credit cards!
Ohio man caught on camera in credit card skimmer plot.
A gas station camera in Fairfield, Ohio caught a man on tape trying to remove a credit card skimmer that station workers found at a pump a few days earlier. When employees discovered the skimmer, a small device designed to fit seamlessly into the pump’s credit card scanner and steal sensitive customer information, they removed it an decided to install the camera in order to catch the person who put it there. This is the 15th card skimmer found at Butler County gas stations since November 2015, making it somewhat of an epidemic for the Ohio county. The man caught on tape has yet to be identified.