Judge Grants Preliminary Approval to Wells Fargo’s $17.85M Deal to End 6 TCPA Lawsuits

Robocall

As reported by Law360 (subscription), Judge Manish S. Shah of the Northern District of Illinois has granted preliminary approval to a $17.85 million settlement with Wells Fargo over consumer claims that the bank violated the Telephone Consumer Protection Act (“TCPA”) by improperly sending unsolicited and harassing prerecorded messages to cellphones about mortgages, home equity loans, credit card accounts, auto loans, student loans, and fraud alerts. [Read more…]

$320M Wells Fargo Derivative Suit Settlement Granted First Round of Approval

Securities Fraud

A California federal judge has granted preliminary approval to a proposed $320 million settlement that would end shareholders’ derivative litigation relating to Wells Fargo’s fake accounts scandal. Plaintiffs in the suit, including the Fire & Police Pension Association of Colorado and the City of Birmingham Retirement and Relief System allege that since at least 2011, the Board and executive management of Wells Fargo knew or consciously disregarded that its employees were illicitly creating millions of deposit and credit card accounts for their customers, without those customers’ consent, in order to meet aggressive sales goals. [Read more…]

11th Circuit Rules for Plaintiff City of Miami on Standards for Proximate Cause in Discriminatory Lending Lawsuits

11th Circuit Rules for Plaintiff City of Miami on Standards for Proximate Cause in Discriminatory Lending Lawsuits

The City of Miami obtained a significant victory in the Eleventh Circuit in Fair Housing Act lawsuits it has brought against certain banks, including Wells Fargo & Co. and Bank of America.  The Eleventh Circuit issued decisions on remand from the Supreme Court on proximate cause, holding “[c]onsidering the broad and ambitious scope of the FHA, the statute’s expansive text, the exceedingly detailed allegations found in the complaints, and the application of the administrative feasibility factors laid out by the Supreme Court in Holmes v. Securities Investor Protection Corp., 503 U.S. 258 (1992), we are satisfied that the pleadings set out a plausible claim.” [Read more…]

Hundreds of Wells Fargo Customers Lose Their Homes to Foreclosure Due to Bank’s Mistakes and Aggressive Actions

Hundreds of Wells Fargo Customers Lose Their Homes to Foreclosure Due to Bank’s Mistakes and Aggressive Actions

Homeowners’ homes foreclosed on after Wells Fargo’s software incorrectly denied available mortgage modifications

News sources have revealed that more than 600 Wells Fargo customers were incorrectly denied loan modifications under a federal assistance program set up by the Treasury Department in 2009, with 400 of the owners ultimately losing their homes to bank foreclosure. The bank claims the loan adjustment denials were the result of a “computer error.” [Read more…]

Wells Fargo Scandal Drives California to Block Mandatory Arbitration Clauses in Banking Contracts

data breach credit cards consumer fraud

In direct response to Wells Fargo’s vast false accounts fraud scheme affecting millions of bank customers, the California legislature has passed a bill “aimed at stopping banks from using arbitration clauses to shield themselves from lawsuits over sham accounts,” as reported by the Los Angeles Times. The California Assembly passed Senate Bill 33 earlier this week, and the California Senate quickly approved. The Bill’s fate now rests with Governor Brown. [Read more…]

Wells Fargo Accounts Fraud Scandal Hits New Heights

Wells Fargo Accounts Scandal Deepens

With financial experts and advisors calling it a “rogue bank,” Wells Fargo has announced an almost 70 percent increase in the number of fraudulent unauthorized accounts created by the bank in years-long effort to boost revenues through deceitful and illegal tactics aimed at Wells Fargo customers. The banking giant admitted its months-long research had uncovered 3.5 million false and unauthorized accounts created by its employees from 2009 through 2016, a rise of 1.4 million additional scam accounts opened at customer expense from the 2.1 million bogus accounts originally exposed that Wells Fargo had previously acknowledged.  [Read more…]

Wells Fargo Dealer Services Abusive Phone & Text Messaging Settlement Announced

Telephone Consumer Protection Act

Lieff Cabraser Heimann & Bernstein, LLP and Burke Law Offices, LLC Announce Proposed Settlement of Wells Fargo Dealer Services TCPA Litigation

A proposed settlement has been reached in a class action lawsuit against Wells Fargo Dealer Services, Inc., a division of Wells Fargo Bank, N.A. (“Wells Fargo”). The lawsuit alleges Wells Fargo violated the Telephone Consumer Protection Act (“TCPA”) by using an automatic telephone dialing system and/or an artificial or prerecorded voice to initiate calls or text messages to cell phones (“Automatic Calls”) in connection with automobile retail installment sale contracts without prior express consent. Wells Fargo denies the allegations, and the Court has not decided who is right. Instead, both sides agreed to a settlement. [Read more…]

Number of Unauthorized Wells Fargo Bank Accounts Significantly Larger Than Initially Reported

Unauthorized Wells Fargo Bank Accounts Significantly Larger Than Initially Reported

Court documents included as part of an imminent class action settlement with Wells Fargo Bank indicate that the banking giant created 1.4 million more phony bank and credit card accounts than it had previously reported. As Law360 notes, “The San Francisco-based bank and a class of account holders estimate that between 2002 and 2017 Wells Fargo employees allegedly opened approximately 3.5 million unauthorized accounts, replacing the previous 2.1 million estimate.”
[Read more…]

City of Philadelphia Files Lawsuit Against Wells Fargo for Discriminatory Lending

High-cost mortgage loans

Lawsuit Alleges the Bank Targeted Minority Borrowers with High-Cost Loans

The City of Philadelphia has filed a federal lawsuit against Wells Fargo in the United States District Court for the Eastern District of Pennsylvania claiming that Wells Fargo has engaged in discriminatory lending practices that target minority borrowers. The Complaint alleges that commencing in 2004 and continuing through the present, Wells Fargo violated the federal Fair Housing Act (“FHA”) by steering African-American and Latino borrowers towards high-cost or high-risk loans even where those borrowers’ credit permitted them to obtain more advantageous loans. [Read more…]

Class Counsel Announce Proposed Settlement of Wells Fargo Student Loan TCPA Litigation

TCPA Settlement Announced Against Wells Fargo

A proposed settlement has been reached in a class action lawsuit against Wells Fargo Bank, N.A. (“Wells Fargo”). The lawsuit alleges Wells Fargo violated the Telephone Consumer Protection Act (“TCPA”) by using an automatic telephone dialing system and/or an artificial or prerecorded voice to initiate calls to cell phones (“Automatic Calls”) in connection with student loans, without prior express consent. Wells Fargo denies the allegations, and the Court has not decided who is right. Instead, both sides agreed to a settlement. [Read more…]

Wells Fargo Seeking to Force Defrauded Customers into Arbitration in Attempt to Sidestep Lawsuits over False Accounts Scandal

Wells Fargo Seeking to Force Defrauded Customers into Arbitration in Attempt to Sidestep Lawsuits over False Accounts Scandal

Banking giant Wells Fargo is attempting to sidestep a multitude of fraud lawsuits by forcing banking customers instead into private arbitration. Under the bank’s widely-reported false accounts scandal, some two million sham accounts were opened under customers’ names without their knowledge or consent. As noted by the New York Times, “This is not the first time Wells Fargo has been accused of trying to use arbitration to its advantage.” [Read more…]

Wells Fargo Loses Arbitration Bid Over Deceptive Overdraft Fees

Wells Fargo Loses Arbitration Big Over Deceptive Overdraft Fees

Mega-bank Wells Fargo has lost a bid to force multidistrict class action over overdraft fee abuse claims into arbitration. The San Francisco-based bank is dealing with numerous lawsuits accusing it of manipulating debit card purchases to maximize overdraft fee revenue in violation of consumer protection laws. Law360 has reported that “the bank has moved to compel arbitration several times with regard to two cases that originated in Florida and California.” [Read more…]

Claims Period Opens for Recipients of Unconsented Wells Fargo Loan-Related Texts and Calls

Bank Misconduct

If you received a call or non-emergency text from Wells Fargo on your cellular telephone, in connection with either a residential mortgage loan and/or a home equity loan, you could receive a payment from a class action settlement

SAN FRANCISCO, Sept. 23, 2016 /PRNewswire/ — The following statement is being issued by Lieff Cabraser Heimann & Bernstein regarding Markos v. Wells Fargo Bank, N.A. A lawsuit is currently pending claiming that Wells Fargo Bank, N.A., (“Defendant” or “Wells Fargo”), violated the Telephone Consumer Protection Act by calling, or sending non-emergency texts to, cellphones without prior express consent. [Read more…]

$30.4 Million TCPA Settlement Against Wells Fargo

TCPA Settlement Announced Against Wells Fargo

Judge Richard W. Story of the Northern District of Georgia has granted preliminary approval to a $30.4 million settlement with Wells Fargo on consumer claims that the bank violated the Telephone Consumer Protection Act (“TCPA”) with the use of an autodialer, artificial voice technology, or prerecorded messages to call cellphones about account overdrafts. [Read more…]

U.S. Supreme Court Denies Review of Wells Fargo Overdraft Fee Manipulation Case

U.S. Supreme Court Denies Review of Wells Fargo Overdraft Fee Manipulation Case

Over One Million bank customers to finally see payments from 2010 trial victory concerning overdraft fees

San Francisco, CA –April 4, 2016 — The U.S. Supreme Court has declined Wells Fargo’s request to review its 2010 loss at trial, where U.S. District Court Judge William Alsup entered a $203 million judgment against the bank for manipulating debit card purchases to maximize its overdraft fee revenue in violation of California state law. Instead of posting transactions in their naturally occurring, chronological order, Wells Fargo deducted the largest charges first, drawing down available balances more rapidly and triggering a higher volume of overdraft fees. [Read more…]

Appellate Court Upholds $203 Million Judgment Against Wells Fargo

Bank Misled Customers to Generate Massive Overdraft Fees on Debit Card Purchases

Michael W. Sobol

Michael W. Sobol of the national plaintiffs’ law firm Lieff Cabraser Heimann & Bernstein, LLP, announced that the U.S. Court of Appeals for Ninth Circuit today upheld the order of U.S. District Judge William Alsup reinstating a $203 million judgment against Wells Fargo Bank. [Read more…]