Inside the Stagecoach
March 28, 2017

Wells Fargo announces agreement in principle to settle lawsuit regarding retail sales practices

The settlement, which must be approved by the court, will address claims of unauthorized retail accounts.

Wells Fargo has reached a $110 million settlement agreement in principle to settle a class-action lawsuit that was filed May 2015 concerning retail sales practices in the Northern District of California (Jabbari v. Wells Fargo, N.A., et al.). The settlement amount, which will be set aside for customer remediation, still must be approved by the court.

“This agreement is another step in our journey to make things right with customers and rebuild trust,” said CEO Tim Sloan. “We want to ensure that each customer impacted by our sales practices issue has every opportunity for remediation, and this agreement presents an additional option. We continue to encourage customers to contact us directly so that we can act quickly to refund fees and address any concerns.”

The settlement class includes anyone who claims — from Jan. 1, 2009, through the date the settlement agreement is executed — that Wells Fargo opened an account in their name without their consent, enrolled them in a product or service without their consent, or submitted an application for a product or service in their name without their consent. Wells Fargo expects the settlement to resolve claims in 11 other pending class-action lawsuits in which unauthorized accounts were opened in customers’ names or customers were enrolled in services without their consent.

The settlement is in addition to the remediation amounts previously paid under consent orders announced in September 2016. Wells Fargo is continuing to work to make things right with customers who were impacted by sales practices issues, including conducting its own voluntary review of accounts from 2009–2010, which were not covered by the consent orders, to determine and remediate any customer harm. It will also continue its nationwide mediation program to address customer concerns.

If the court grants preliminary approval of the settlement agreement, a notice will be issued providing information concerning the process for making claims, and customers who believe they should be included in the class-action lawsuit will be able to submit claims. The court will also need to grant final approval of the settlement before payments will be made to class members. In the meantime, customers do not need to take any action to be included in the settlement class subject to this agreement; however, as always, they are encouraged to contact Wells Fargo to discuss any account issues.

Additional details are available in a March 28 press release.