Wells Fargo admits account scandal dates back to 2002

The Wells Fargo phony account scandal started six-and-a-half years earlier than initial believed.

On Friday, the beleaguered bank added $32 million to its settlement with customers — and admitted that the scandal dates back to May 2002.

In March, Wells Fargo said it had reached a $110 million deal to settle 12 lawsuits filed by customers who claimed to have been ripped off with fees attached to the phony accounts. In that deal, the bank said the scandal dated from January 2009.

The expanded settlement will pay those customers $142 million, Well Fargo said.

“The expansion of this agreement is another important step to make things right for our customers,” said Chief Executive Tim Sloan said in a statement.

The settlement with customers is on top of the $185 million fine the bank paid in September to a host of federal, state and local regulators and law enforcement agencies when the scandal first gained national exposure.

Wells Fargo has been working to win back customer confidence ever since that fines were announced. The scandal cost then-CEO John Stumpf his job.

The San Francisco-based lender has since then launched internal probes, fired more than 5,000 employees, apologized to customers, changed compensation plans and scrapped sales targets to win back customer confidence.

Wells Fargo shares fell 0.9 percent on Friday, to $53. They are down 3.8 percent this year.