Wells Fargo is facing multiple lawsuits from customers and employees over the long-running fake account fiasco that saw more than two million bogus, unauthorized accounts being opened in customers’ names. Even though lawmakers and consumer advocates have repeatedly asked the bank to not sidestep its liability by using an often-ignored clause in its customer agreement, lawyers for Wells Fargo …
The recent Wells Fargo scandal is yet another fine example of how trust in the financial sector is often misplaced. Although the bank has apologized – in public – for this incident, they are not honoring their victms’ legal claims so far. Opening unauthorized account in someone else’s name should be a clear-cut case for the US legal system, but that is not the case it seems.
San Francisco-based Wells Fargo Bank (WFC), one of the largest banks in the US, is trying to push its customers to resolve the lawsuits that they are bringing over the opening of unauthorized accounts through private arbitration, instead of in a courtroom, according to legal documents filed Wednesday. The bank asked the US District Court in Utah to order dozens of customers to settle their …
Wells Fargo & Co. enriched itself at its employees’ expense by including costly, in-house target date funds in its 401(k) plan, a new class action complaint alleges ( Meiners v. Wells Fargo & Co. , D. Minn., No. 0:16-cv-03981, complaint filed 11/22/16 ). In the past year, several proposed class actions have targeted financial companies that include in-house investment products in …
Wells Fargo faces a new lawsuit claiming 401k self-dealing on the part of $3 billion of employee retirement savings. Plaintiffs allege the company funneled 401k plan assets into “expensive, under-performing” proprietary target date funds to enrich itself. Reuters reports the proposed class-action lawsuit, filed on Tuesday in federal court in Minnesota, accused the third-largest U.S. bank of steering 401(k) contributions to its Wells Fargo Dow Jones Target Date funds. The lawsuit, filed by employees, seeks to “recoup excess fees and unrealized profits stemming from Wells Fargo’s alleged breach of fiduciary duties to all 401(k) participants over the last six years,” according to the complaint. It added that Wells Fargo’s target date funds cost 2.5 times more than similar funds from …
Wells Fargo has confirmed the existence of an investigation by the Securities and Exchange Commission into its sales practices, and the bank revealed that it has almost doubled funds set aside to deal with its ongoing legal problems. The bank said in a regulatory filing Thursday that the SEC has joined other federal state and local government agencies and states attorneys general, …
More than 250,000 homeowners who had loans serviced by Wells between 2005 and 2010 and paid for this type of appraisal could receive at least $120 each. Under its mortgage servicing agreement, Wells can require borrowers who default on their loan to provide an informal estimate of the home’s value, usually from a real estate broker. Starting in 2001, Wells Fargo began ordering these “broker …
Utah is poised to become ground zero in a lawsuit aimed at making Wells Fargo pay. Victims of the bank’s recent scheme hope to hit the bank where it hurts and hit them hard – and Utah might hold the key to it all. In the weeks since news broke that Wells Fargo opened as many as 2 million fake accounts in their customers’ names, there has been a barrage of moves made by the bank to show …
Deadlines in a $30 million class action settlement with Wells Fargo over alleged violations of the federal Telephone Consumer Protection Act have been pushed back to avoid an additional $900,000 in costs by the class. The settlement, which amounts to $30,446,022.75, was preliminarily approved by Judge Richard Story of the U.S. District Court for the Northern District …
CEO John Stumpf’s resignation, announced Wednesday , doesn’t come close to ending the troubles at Wells Fargo. The bank is still the subject of criminal probes and boycotts.