Wells Fargo rolls out ad cam­paign ad­dress­ing sales scan­dal

Daily Local News (West Chester, PA) - - BUSINESS - By Ken Sweet AP Busi­ness Writer

NEW YORK » Wells Fargo launched a new ad­ver­tis­ing cam­paign this week to ad­dress the com­pany’s on­go­ing sales prac­tices scan­dal and what it is do­ing to make things right for its cus­tomers.

The tele­vi­sion cam­paign , which launched Mon­day, is be­ing rolled out na­tion­ally on ma­jor net­work evening news­casts as well as the Sun­day talk shows. Wells is also buy­ing ads on the ma­jor Span­ish lan­guage net­works Tele­mu­ndo and Univi­sion, said Wells Fargo spokesman Mark Folk.

The TV ads sup­ple­ment print and dig­i­tal ads Wells Fargo rolled out ear­lier this month. The cam­paign is ex­pected to run for at least the next cou­ple of months, Folk said. Ra­dio ads are ex­pected started next week.

“The com­mer­cial re­it­er­ates Wells Fargo’s com­mit­ment to cus­tomers and the steps we are tak­ing to move for­ward and make things right,” Folk said.

Wells Fargo is em­broiled in the big­gest scan­dal in its 164-year his­tory after the bank ad­mit­ted that it opened up to 2 mil­lion bank and credit card ac­counts without cus­tomers’ au­tho­riza­tion. The scan­dal led to the abrupt re­tire­ment this month of its CEO, John Stumpf.

The bank faces sev­eral class ac­tion law­suits, as well as crim­i­nal in­ves­ti­ga­tions by the De­part­ment of Jus­tice and the California At­tor­ney Gen­eral’s Of­fice.

There are also con­cerns that cus­tomers are leav­ing the bank, or at least par­ing back their busi­ness with Wells. In its quar­terly earn­ings re­port re­leased ear­lier this month, Wells re­ported dou­ble-digit drops in bank ac­count open­ings as well as drops in bank branch traf­fic.

A study by con­sult­ing firm cg42 of 1,000 Wells Fargo cus­tomers re­leased this week showed that while only 3 per­cent of Wells Fargo cus­tomers said they were im­pacted by the prac­tices, roughly 14 per­cent of cus­tomers sur­veyed said they planned to switch banks in the next 12 to 18 months.

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