Wells Fargo Expanding Class Action Settlement to Include Accounts from as Early as 2002
The updated settlement adds $32 million to reach a total of $142 million
Wells Fargo has announced that it is expanding its class-action settlement for fake accounts to include accounts opened as early as 2002.
The banking giant is adding $32 million to the settlement, which will then total $142 million.
"The expansion of this agreement is another important step to make things right for our customers," said Tim Sloan, president and CEO. "On our journey to rebuild trust, we want to ensure our customers feel confident that we have heard their concerns about retail sales practices, which includes offering them numerous opportunities for remediation. We encourage any customer with concerns or questions about their accounts to contact us."
Wells has submitted the settlement agreement and summary of the claims process to a federal court. The new settlement takes into account the findings of the sales practices investigation that was conducted by the bank's independent board of directors. The new settlement class will consist of consumers who had an account opened in their name without their knowledge or consent anytime between May 1, 2002 and April 20, 2017.
After administration costs and attorneys' fees have been paid, the settlement will provide three types of compensation for consumers involved in the suit: reimbursement of any fees incurred, compensation for any damage done to the consumer's credit by the opening of the fraudulent accounts, and more compensation from the Net Settlement Fund.
The next step in the settlement process is for the court to approve it. If it does, a notice will be sent out including information about how to make a claim, and consumers who believe they have been affected will be able to submit a claim. The court, however, has to grant final approval of the settlement before compensation will be sent out.
Consumers who believe that they had an unauthorized account or service opened in their name should contact Wells Fargo directly at (877) 924-8697.