On Dec. 13th the Los Angeles City Council unanimously voted to approve new socially responsible banking standards, including a sales goals disclosure requirement. The LA City Department of Finance issued the Request for Proposal (RFP) for the city’s next 5 year banking service contract without incorporating the new standards. The banking service contract is worth over $40 million with $25 million in fees alone.
Angelenos fought hard to secure much-needed consumer protections in the Responsible Banking Ordinance and the banking RFP and contracts. We cannot forget that Wells Fargo, which held the largest contract with the City of LA, also led the industry in the unscrupulous use of aggressive sales practices that led to more than 3 million unauthorized bank and credit card accounts. Let’s avoid another Wells Fargo scandal and incorporate the new socially responsible banking standards in the bidding process and banking contract.