$110M Settlement Proposed in Wells Fargo Bank Account Fraud Lawsuits

This is a settlement for the Wells Fargo Fraudulent Bank and Credit Card Account Fees lawsuit.

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Santa Clara, CA: A $110 million settlement agreement has been reached, potentially ending 12 banking fraud class action lawsuits brought against Wells Fargo & Co over allegations bank workers opened accounts in customers’ names without those customers’ authorizations.

According to the terms of the deal, if approved, eligible class members would be reimbursed for fees they were charged related to the unauthorized accounts and out-of-pocket expenses. Once those losses have been reimbursed, together with court costs and attorneys’ fees, the remaining funds would be split among all claimants, based on the number and kinds of unauthorized accounts or services claimed.

Eligible class members would be anyone who alleges Wells Fargo opened an account in their name without consent, enrolled them in a product or service, or submitted an application for a product or service in their name without consent between January 1, 2009, and the date the settlement is executed.

Wells Fargo has said it will also continue with its voluntarily review of bank accounts opened between 2009 to 2010, to determine and remediate any customer harm. It has also said it will continue its nationwide mediation program to address customer concerns.

Wells Fargo has already agreed to pay $185 million in fines, after authorities uncovered 1.5 million fraudulent bank and 565,000 credit card accounts set up by bank employees in order to boost or hit sales targets. Further, the employees also made up PIN numbers and email accounts in connection with the false accounts, to get people to sign up for online banking services, the Consumer Financial Protection Bureau (CFPB) said in a statement.

Nearly 5,300 employees were fired after the scheme was revealed, and in February, Wells Fargo’s board of directors voted to fire four senior managers in connection with an ongoing investigation stemming from the scandal.

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Reader Comments

Posted by
David Boyd
on
two extra accounts

Posted by
joann loffler
on
Wells Fargo continues to defraud families,elderly,disabled and military out if their homes with preditory and fraudulent loans. They sold off the bad loans to investors after orginal investors were already paid and Wells Fargo tripled profits while families are left with home loss,financial loss and damages. Wells Fargo stops at nothing with the dishonest banking and dishonest mortgage practices. Best to just not do business with this bank at all.

Posted by
Bluloony
on
Wells Fargo commits fraud on the servicing of loans for the GSEs. I have documented my horrifying plight of fraud on WFfraud.com . We can't choose who services our loans and there is no recourse for the helpless. Please read about and pass the knowledge about Wells Fargo breaking the law.

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