collected by :Molly Tony
Wells Fargo will pay $110 million to settle a class-action lawsuit over a fake-accounts scandal in which thousands of customers were signed up for services that they didn’t consent to.
“This agreement is another step in our journey to make things right with customers,” Wells Fargo CEO Tim Sloan said in a statement published Tuesday.
The bank announced the settlement Tuesday, saying customers who had accounts opened without their permission dating back to 2009 will receive compensation.
The bank faces 11 other class-action suits in the scandal, though it said it believes this settlement will resolve those cases.
The bank’s board is also conducting an investigation into the bank’s sales practices, with a report due out in April.
Wells Fargo to Settle Fake Account Opening Lawsuit for $110M
Wells Fargo expects this payment to settle claims in 11 other pending suits, including 10 in San Francisco federal court.
Wells Fargo & Company WFC has agreed to pay $110 million to resolve a lawsuit filed against it by customers in May 2015.
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“Earlier in Sep 2016, Wells Fargo had agreed to pay $185 million in fines and penalties to federal regulators and the Los Angeles city attorney’s office pertaining to similar charges.
according to John Stumpf, the CEO of Wells Fargo at the time the scandal broke, also resigned.
On Tuesday, the Office of the Comptroller of the Currency accused Wells Fargo of an “extensive and pervasive pattern” of discriminatory and illegal lending practices for years.
The latest payout comes after Wells had already been dinged with $185 million in fines and penalties for the 2 million or so deposit and card accounts Wells Fargo employees set up for customers without their permission.
“The $110 million settlement, if approved, will require Wells Fargo to repay the fees charged to class members by Wells Fargo for unauthorized accounts, and provide millions of dollars of additional monetary relief to the class,” Derek Loeser, a lawyer for the plaintiffs, said in the statement.
Wells Fago has come to a settlement agreement with customers whose personal information their staff used to set up fake bank and credit card accounts.