Silver Law Group Investigating Banks And Brokerage Firms For Putting Customers In Low Interest-Bearing Accounts

Silver Law Group is investigating banks and brokerage firms for failing to provide competitive interest rates to its customers in this high-interest-rate environment. When customers open accounts, certain firms enroll accountholders in Bank Sweep Programs, which may incur significant expenses for customers while benefiting the banks.  If you believe you’ve been affected by unfairly low interest rates, contact Silver Law Group at (800) 975-4345 or email ssilver@silverlaw.com.

What Are Banks And Brokerage Firms Doing Wrong?

Several class actions have been filed against financial institutions regarding their “Cash Sweep Programs.” When customers open accounts, the firms allegedly automatically enroll customers in cash sweep programs that “sweep” uninvested cash balances into interest-bearing bank accounts chosen by the banks.

Accountholders alleged in these class actions that they have no control over the terms of these interest-bearing bank accounts. Instead, the firms choose accounts with terms that are beneficial for them but disadvantageous for customers. These accounts may require customers to pay fees while offering minimal returns.

According to one class action complaint, a bank provided its customers with interest returns between 0.05% and 0.5%, while competitors offered returns of almost 5%. Consequently, customers miss out on substantial gains on their cash balances while still required to pay other fees and costs, potentially resulting in a double financial impact: lower returns on their investments combined with additional hidden fees.

In 2023, the Securities and Exchange Commission launched an investigation into Wells Fargo regarding these cash sweep programs. In 2024, Wells Fargo announced that it will begin paying its customers higher interest rates, a change estimated to cost them $350 million in yearly revenue. Silver Law Group’s investigation has revealed that the problem is likely more widespread that Wells Fargo.

It’s important to check your interest rates as you may have a claim against your bank or brokerage firm.

Are You Enrolled In A Cash Sweep, Money Market, Or Cash Deposit Program That Pays Unfairly Low Interest?

If you believe you’ve been a victim of this misconduct, then we urge you to contact Silver Law Group immediately. Silver Law Group investigating and preparing claims on behalf of affected individuals.

Contact us today at (800) 975-4345 or email ssilver@silverlaw.com to learn more about your options. We handle claims on a contingency fee basis—you pay nothing unless and until we recover money for you.

Take action now to ensure your financial interests are protected.