collected by :Molly Tony
He sued but U.S. District Judge Vince Chhabria agreed with Wells Fargo that the dispute should go to arbitration.
The settlement marks a dramatic legal turnaround for Wells Fargo customers, who have had little success in taking the bank to court over unauthorized accounts.
He said he received notices from collections agencies asking for fees owed to Wells Fargo related to those accounts.
It’s not clear how many individual customers that represents, as many customers have complained of numerous unauthorized accounts opened in their name.
The OCC said it dropped the bank’s rating because of numerous regulatory actions, including the settlement over the unauthorized accounts.
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Wells Fargo to pay $110 million to settle lawsuit over account abuses
After attorneys’ fees and costs of administration, claimants will be reimbursed for any wrong fees, Wells Fargo said on Tuesday.
Wells Fargo, which has abandoned sales quotas, had already set aside enough money to cover the $110 million settlement.
The case is Jabbari et al v. Wells Fargo & Co et al, U.S. District Court, Northern District of California, No.
The lawsuit dates from May 2015, sixteen months before Wells Fargo agreed to pay $185 million in penalties to settle regulatory charges over the sham accounts, estimated to number as many as 2 million.
(Reuters) – Wells Fargo & Co said it agreed to pay $110 million (88.38 million pounds) to settle a lawsuit by customers challenging its opening of accounts without their permission, a practice that led to a scandal that cost the bank’s chief executive his job.
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