Wells Fargo Financial, Inc.

San Francisco, CA: (Apr-26-07) A class action lawsuit filed against Wells Fargo Financial, Inc., the consumer finance subsidiary of Wells Fargo & Company, accused it of having nonprime mortgage lending practices in California. The suit filed in December 2003 in San Francisco Superior Court, had as class members certain California customers who entered into real estate-secured loans with Wells Fargo Financial between Dec. 18, 1999 and Nov. 20, 2005. In a settlement reached, Wells Fargo Financial committed to continue for three years several improvements it had already begun implementing, which have further strengthened its nonprime real estate-secured lending practices, and to incorporate other practices to benefit its customers. It also agreed to enact a default relief program, putting aside $2.4 million to provide relief to qualifying class members whose loans have become delinquent by more than 60 days. Qualifying class members who submit claims may also be entitled to cash payments, which will be determined using a formula to disburse up to $4.4 million. [PR INSIDE: NONPRIME MORTGAGE]