Banks play an important role in our financial lives, but they often find themselves in the crosshairs of public disdain.
There are a variety of reasons why some banks have earned the ire of the people. Due to exorbitant transaction fees or even fraudulent practices, some banks in America have become particularly despised. Here’s a list of some of the most hated banks in America and the reasons behind their notoriety.
Bank of America
This bank is not only one of the most hated banks in America, but it has also faced many legal troubles, including a $100 million settlement for alleged fraud against hospitals and schools.
This went beyond fees and paperwork, signaling deeper issues within the bank’s practices. There have also been accusations of a multitude of abuses, including mishandling mortgages under the 2009 Home Affordable Modification Program (HAMP).
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JPMorgan Chase
It is the largest bank in America, so it unsurprisingly attracts both success and disdain. Like Bank of America, conspiracies, including instances of fraud and racism, have fueled public anger.
There have also been many customer complaints—over 4,000 complaints in the past three years—underscoring systemic issues within the bank’s system. Due to massive failures in recordkeeping, they also had to pay out a $125 million settlement to the Securities and Exchange Commission (SEC) at the close of 2021.
Wells Fargo
Wells Fargo is one of the largest banks, but it has faced severe backlash, particularly after a $3 billion settlement linked to a fake account scandal.
The revelation that employees were able to create fake accounts to meet quotas led to widespread customer fury, which ultimately significantly damaged the bank’s reputation.
Citigroup
This is the fourth major bank in the U.S., holding over $1 trillion in assets, and it has not escaped legal troubles.
There were recent fines of up to $400 million, which highlight recurring internal problems. The bank was also recently accused of inadequate security measures that led to customers losing thousands through scams and fraud.
KeyBank
The bank is based in Cleveland. It recently faced customer wrath because of a data breach, potentially compromising personal data.
The anger led to a class-action lawsuit that alleged that the bank’s data security vendor did not follow industry or legal standards.
HSBC
Hong Kong and Shanghai Banking Corporation is a great bank, but it once faced a huge $1.9-billion fine in 2012 for alleged money laundering for terrorists and cartels.
That stain on its reputation is what led to it being mentioned among the most hated banks in America.
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U.S. Bank
U.S. Bank is a prominent financial institution that has also had to pay a multimillion-dollar fine for exploiting customers’ personal data to open sham accounts.
The total amounting to $37.5 million, as well as the obligation to reimburse fees to affected customers, is a clear deterrent to other banks as it highlights the repercussions of unethical practices.
Morgan Stanley
This bank, which has its headquarters on Broadway, has grappled with a range of controversies, from racial discrimination lawsuits to the inadvertent sale of hard drives containing the personal data of millions of customers.
They reportedly failed to properly dispose of hard drives containing private customer data, which turned up in an online auction. In response, the SEC ordered them to pay $35 million to settle the allegations.
PNC Bank
This bank boasts over 2,000 branches across the country, but that is not enough to prevent it from getting embroiled in fraud schemes.
Fraud has repeated itself too many times with this bank, and this repeat offense has fueled customer dissatisfaction and eroded trust in the institution, making it one of the most hated banks in the U.S.
Truist
The bank was formed by the merger of BB&T and Sunbankt banks. One would think merging two banks would gurantee double efficiency and security but Truist has faced a barrage of customer frustration since the merge.
Complaints always seem to hover around unexplained fees and prolonged wait times for customer service, highlighting the challenges that can accompany mega-corporation mergers.
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Marcus
Goldman Sachs owns this bank. It positions itself as an online-only bank offering higher-yield savings.
However, a lack of ATMs and checking accounts has frustrated customers, especially amid federal investigations inbank’s bank’s alleged failure to protect customer data.
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