shareholder proposal (14a-8) · 2014
Sisters of St. Francis of Philadelphia at Wells Fargo & Co.
Urged Wells Fargo to discontinue its Direct Deposit Advance product, a payday-style advance repaid automatically from the customer's next deposit, which the filers argued trapped customers in a cycle of debt through automatic repayment and high fees. Resolutions were filed for three consecutive years and the investors had engaged the bank since 2009.
What happened
Result: Overtaken by the company's own decision before any vote. Wells Fargo announced on January 17, 2014 that it would discontinue the Direct Deposit Advance product, and no such proposal reached the 2014 ballot: the only two stockholder proposals voted at the April 29, 2014 annual meeting were on an independent chairman and on internal controls over mortgage servicing and foreclosure. The resolution for that year was filed by Christian Brothers Investment Services; the Sisters of St. Francis of Philadelphia had dialogued with the bank and filed resolutions on the same product for three consecutive years, and ICCR members had been engaging Wells Fargo on affordable credit since 2009.
Wells Fargo discontinued the Direct Deposit Advance programme effective February 1, 2014. US Bank announced the same day that it would wind down its Checking Account Advance programme, and Regions Bank had recently pulled a similar product, leaving Fifth Third as the only major bank still offering one.
Who is involved
- Sisters of St. Francis of Philadelphia filer
- Christian Brothers Investment Services co-filer
- Interfaith Center on Corporate Responsibility members co-filer
- Wells Fargo company
What this campaign is about
- Access to banking, insurance, and financial services Pivotal · UN Sustainable Development Goals
- Equal rights to economic resources and financial services Necessary · UN Sustainable Development Goals