Wells Fargo CEO Denies Allegations of Collusion on Fees
Wells Fargo CEO John Stumpf smacked down allegations by House Democrats that big banks colluded on raising some fees.
"I haven't even seen the complaint," he told CNBC Friday. "I saw it in the paper and based on what I saw there there's no merit to it at all."
House of Representatives Democrats on Thursday called on the Justice Department to investigate whether large banks including Bank of America , Wells Fargo and JPMorgan Chase are colluding on raising debit card fees and other monthly charges as a result of the Durbin amendment, which went into effect on Oct. 1 and cut by nearly half the average amount banks can charge merchants when customers swipe their debit cards.
Stumpf also defended the bank's decision to charge customers $3 every month to use their debit cards, calling it "a test." Bank of America said last month it plans to charge customers $5 to use their debit cards starting next year.
Stumpf declared Wells Fargo's services a "terrific value," adding that customers can walk into any branch and get many services, including ATM withdrawals, at no extra charge.
"Over a long period of time, most of our customers pay for these services by doing more business with us. We've been cross-sale champions for a lot of years. And in some cases that's not the case so we do tests. We test all the time. We'll find out the right balance here and we'll come to the right conclusion."
— Reuters contributed to this report.