Wells Fargo has expanded its class-action settlement for retail sales practices, including any customers impacted since May 2002 and adding $32 million to the previous agreement. This brings the total settlement amount to $142 million.
Wells Fargo expects this settlement, which must be approved by the court, will resolve claims in 11 other pending class actions that unauthorized accounts were opened in customers’ names or that customers were enrolled in products or services without their consent. The settlement class will now consist of all customers who claim Wells Fargo opened an account in their name without consent, enrolled them in a product or service without consent, or submitted an application for a product or service in their name without consent from May 1, 2002, through April 20, 2017.
“The expansion of this agreement is another important step to make things right for our customers,” said CEO Tim Sloan. “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 Fargo has submitted the class-action settlement agreement in the Northern District of California (Jabbari v. Wells Fargo, N.A., et al.) to settle the lawsuit concerning retail sales practices. The updated settlement agreement takes into account findings from the Wells Fargo Board of Directors’ independent sales practices investigation, which was released April 10.
If the court grants preliminary approval of the settlement agreement, a notice will be issued with information about the process for making claims, and customers who believe they should be included in this suit will be able to submit claims. The court also will 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; however, they are encouraged to contact Wells Fargo to discuss any account issues. Customers should contact Wells Fargo directly if they believe they had an unauthorized account or service opened in their name by visiting a branch or calling 1-877-924-8697.
After attorneys’ fees and costs of administration, the $142 million settlement will provide three forms of compensation for settlement class members: reimbursement of fees incurred, compensation for damage to credit caused by the opening of unauthorized accounts at Wells Fargo, and, after repayment of fee damages and credit impact damages, additional compensation paid from the Net Settlement Fund.