Affected Customers Can Get a Piece of the Wells Fargo Settlement Pie
A federal court has approved a large settlement on behalf of affected Wells Fargo and Co. (NYSE:WFC) customers.
In all, the $142.0-million national class action settlement with Wells Fargo has been approved, meaning people can now apply for their share of the Wells Fargo settlement pie.
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For those not familiar with the specifics, Wells Fargo admitted opening 3.5 million unauthorized accounts (checking & savings) between May 1, 2002 and April 20, 2017. These unauthorized accounts also included credit cards and lines of credit. The spoofed accounts were made possible by unrealistic sales goals foisted on the firm’s employees by top management, which prompted a personnel shake-up earlier this year. Customers in all 50 states were affected.
In the end, the federal court ruled that the settlement was “fair, reasonable and adequate.” Wells Fargo CEO Tim Sloan also approved, calling the court ruling a major milestone in the effort to make things right for their customers. (Source: How to get your fair share of the Wells Fargo settlement, The Chicago Tribune, October 3, 2017).
Keys facts of the three categories of compensation are as follows:
Fee reimbursement
- Those with open accounts between January 1, 2009 and April 20, 2017 will have any fees related to unauthorized accounts compensated
- For unauthorized accounts opened after May 1, 2002 (but before the dates above) or before December 31, 2018, affected customers will receive a flat fee reimbursement based on the average fee paid to the 2009-2017 group
Credit impact damages
- Unauthorized account activity leading to credit score damage
- Affected customers must authorize a law firm representing Wells Fargo to check their credit reports
- Positive confirmation of credit score damage could lead to compensation
Additional compensation
- Based on the amount of funds remaining from the $142.0 million after fee reimbursement and credit impact damages are disseminated
- Award amount based on the number of fraudulent accounts opened per individual affected
- Wells Fargo has allocated at least $25.0 million for “additional compensation” damages
How to Apply for Your Share of Wells Fargo Settlement
A Wells Fargo settlement claim form can be obtained from the Wells Fargo settlement web site (wfsettlement.com). Affected customers must register to claim Wells Fargo overdraft settlement status. Due to the the settlement being so recent, forms may not be available until October 6, 2017.
Now that the final go ahead has been given, Wells Fargo settlement checks for 2017 should be rolling out shortly. Keep in mind that Wells Fargo has already issued $5.0 million worth of compensation as part of a side settlement with the Consumer Financial Protection Bureau and the Los Angeles City Attorney’s Office. If you received compensation from that settlement tranche, you’re not eligible for additional compensation.
Another note: plaintiffs wishing to file separate lawsuits also aren’t eligible for the $142.0-million Wells Fargo settlement. Exclusion forms will be available on the settlement web site and must be submitted by December 5, 2017.
For more class action suit information, contact a Wells Fargo customer service representative at 1-866-431-8549.
