Last month , LA took on predatory and high-pressure sales goals at major banks by tightening its responsible banking ordinance. Now, if a bank wants the city's $17 million taxpayer-funded contracts, it must be transparent about sales goal tactics and employee compensation, and it can’t retaliate against whistleblowers who report suspected illegal bank activity.
The Los Angeles City Council has passed an ordinance — the first of its kind in the country, according to supporters — that would require banks seeking to do business with the city to disclose whether they have sales goals or quotas [...]
The Los Angeles City Council has amended its Responsible Banking Ordinance to crack down on banks with predatory lending practices, according to a release from the advocacy group Committee for Better Banks.
Last Wednesday, Los Angeles City Council voted 12-0 in favor of making banks disclose whether they set individual or branch-level sales goals or requirements, if they want to do business with the city, American Banker reported.
A broad coalition of elected officials, local residents and community leaders are encouraging the Los Angeles City Council to require that any bank it does business with not engage in the kinds of unethical practices that helped mire the city’s current bank, Wells Fargo, in scandal.
With that contract expiring next year, a coalition of bank reformers has asked the city council to put some teeth into the city’s Responsible Banking Ordinance so it will never again give its business to a bank like Wells. Their suggested amendments include a ban on doing business with banks that place unreasonably high sales demands on their employees, and with banks that don’t explicitly protect whistle-blowers.
It has been almost a year since Wells Fargo was fined an unprecedented $185 million dollars for illegally opening 3.5 million accounts. Since then, politicians from Los Angeles and Philadelphia to Raleigh and Washington, D.C., have [...]
For the last six years, the Consumer Financial Protection Bureau has tracked customers’ complaints about major banks — 159,158 complaints in California alone — and exposed a vicious pattern of deception and greedy practices [...]