Wells Fargo Unauthorized Accounts Class Action Settlement
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Parties have reached a $142 million settlement over allegations that Wells Fargo employees opened accounts without customers’ consent.
The settlement provides compensation for Wells Fargo customers who were affected by the bank’s practice of opening unauthorized accounts in customers’ names. These customers were allegedly charged fees for these unauthorized accounts and suffered damage to their credit ratings.
The settlement requires Wells Fargo to create a settlement fund worth $142 million. After deductions are made to cover court costs, attorney fees and the costs of settlement administration, the remainder of the settlement fund will be distributed among qualifying Class Members.
Notices will be sent to known Class Members sometime in early October. Potential claimants can register online to be notified when the settlement administrator begins to accept claim submissions.
Beginning Oct. 6, 2017, Class Members may register online to receive a Claim Form via mail or to file a claim online. The settlement administrator will begin sending notices to known Class Members in October. Potential Class Members who do not receive a notice may want to contact the settlement administrator to confirm their membership in the Class.
Class Members who wish to be excluded from the settlement or to object to its terms must do so in writing by Dec. 5, 2017.
Class Members can get compensation for account fees and damage to their credit, and they may get additional compensation as a distribution of any leftover settlement funds.
Those who were charged fees in association with an unauthorized account can get reimbursed for those fees. Class Members can receive the actual amount of the fees they were charged for accounts opened between Jan. 1, 2009 and April 20, 2017, if those accounts were not already used and those fees have not already been reimbursed.
For unauthorized accounts opened between May 1, 2002 and Dec. 31, 2008, Class Members can receive a flat amount that will be equal to the average reimbursement issued for unauthorized accounts opened between Jan. 1, 2009 and April 20, 2017.
Credit Impact Damages will be determined on a case-by-case basis to compensate for higher interest rates paid on loans or credit cards attributable to the Class Member’s unauthorized accounts.
After Fee Reimbursements, Credit Impact Damages, and all other expenses are paid, any remaining settlement funds will be distributed among Class Members.
