Our bank fraudulently opened a credit card, then charged us to it, what can we do?

Long story, our bank opened a credit card in my wife's name, without her knowledge, approval, signatures. Never even received the card, or activated it. Months later, they set it up for over draft protection. Bank then mistakenly charged us a mortgage payment which they credited (about a week later) however over draft protection came from this credit card we never set up. We didn't notice it at the time. Finally figure out about this mystery credit card, they said it was applied for in the bank, I ask for proof. Turns out it was done 'by phone' to which their standards have now changed. I asked for details, regional manager extremely apologetic says it was done by phone on Aug 15th. Check phone records and no such call was received. I also had them give me the phone application for my wife. Again, completely wrong information on the credit application. This is a classic fraud case and didn't know whether taking it to a lawyer would do anything? Any advice. Don't really want the bank to get away with this considering credit is such an important thing!