Settlement with Wells Fargo Bank 2024: Information on eligibility, amount and payment dates for class action lawsuits

Settlement with Wells Fargo Bank 2024: Information on eligibility, amount and payment dates for class action lawsuits

U.S. bank Wells Fargo has agreed to pay $1 billion to settle a class-action lawsuit brought by shareholders who claimed the company failed to quickly change its management and operations after a series of crises. A May 2024 document said the deal had been submitted to a federal judge in Manhattan for approval.

The Louisiana Sheriffs’ Pension & Relief Fund and Sweden’s Handelsbanken Fonder AB were among the shareholders who filed a class action lawsuit against the San Francisco-based bank in June 2020. In the Wells Fargo Bank Settlement 2024, they said Wells Fargo failed to keep its risk control and compliance promises made to authorities in 2018.

After numerous violations, the Federal Reserve required the bank to submit a plan to take over management and a temporary asset limit. The Federal Reserve imposed strict measures in response to a series of scandals related to bank misconduct, such as the opening of millions of fraudulent accounts and charging unnecessary insurance premiums to over half a million auto loan borrowers.

Comparison with Wells Fargo Bank 2024

A former Wells Fargo employee filed a complaint alleging the company misused money forfeited from his 401(k) plan. This case is part of a growing trend of companies being held accountable for using forfeited funds from 401(k) plans to lower employer payments. A March 2020 report from the House Financial Services Committee criticized the bank for failing to implement meaningful governance changes and for failing to follow Fed guidelines on risk management and compliance.

The bank was hit with a new $250 million fine in September 2021 for violating the terms of a settlement to compensate customers who had been harmed in the past by the false accounting scandal. Wells Fargo has spent billions on settlements and fines since 2016 in connection with its business practices.

who is affected

With one in three American households being a Wells Fargo customer, the bank’s dubious business practices have affected a significant portion of the population. If you have a Wells Fargo account, you need to understand the damage you may have suffered, how current payments are being processed, and be on the lookout for new problems that may arise in the future.

If you have been affected, you can use the information below to learn more about what to do, whether you can expect compensation, and whether you have been affected. The bank has over 16 million accounts that have been compromised by fraudulent activity.

Settlement with Wells Fargo Bank 2024: Information on eligibility, amount and payment dates for class action lawsuits

Car loan customers

The loan payments made by some customers were not correctly credited to their balances. This resulted in higher loan interest rates, late fees and unjustified liens. In certain cases where customers had purchased GAP insurance, the bank withheld money from them in case they repaid the loan early. This theft affected more than 11 million accounts and the holders of these accounts owe a total of $1.3 billion.

Mortgage borrowers

Some consumers were wrongly prevented by Wells Fargo from modifying their loans to avoid foreclosure. In addition to falsely reporting some customers as dead, the bank also overcharged for legal services, leading to applications being denied and thousands of inaccurate foreclosures. Thousands of consumers affected by mortgage underwriting errors are entitled to about $200 million in compensation.

Class Action Payment Dates 2024

  • A class action lawsuit against Wells Fargo alleges the bank facilitated a $300 million Ponzi scam that drained the savings of over 1,000 investors, most of whom were retirees. The lawsuit filed alleges that Wells Fargo knew about the scam from 2011 to 2021 and helped defendants Marshal Seeman, Eric Holtz and Brian Schwartz deceive investors through many different entities. Plaintiff Fanny Millstein alleged that the scheme’s operators used the San Francisco-headquartered institution as their primary bank.
  • The settlement covers the most significant customer complaints against the bank in 2024 and is related to the 2016 fake accounts crisis. A $3.7 billion settlement with the CFPB was finalized and distributed to people in December 2022. Therefore, recipients who are worried about their Wells Fargo Bank compensation payment for December 2022 are expected to receive it in early 2024, according to the payment dates for Wells Fargo Bank lawsuits in 2024.

Procedure for claiming this compensation

  • Wells Fargo is required by law to contact you about compensation if you believe you have been a victim of abuse and/or negligence. Victims are entitled to their compensation without having to take any action; some have even already received it.
  • You can contact Wells Fargo at 844-484-5089 if you believe you are owed money and the bank has not gotten back to you. Anyone who does not receive help from the bank can file a complaint with the CFPB. Damage payments vary depending on the specific violation. For example, people whose cars were wrongfully repossessed are entitled to at least $4,000 in reimbursement for all related costs. The CFPB warns consumers that thieves may take advantage of this to defraud Wells Fargo victims. Be aware that anyone who contacts you with promises to help you get your money back and/or requests an electronic payment is a scam and you must call the phone number above.