Class action claims Wells Fargo improperly charged mortgage fees

Wells Fargo class action overview:

• Who: A consumer filed a class action lawsuit against Wells Fargo & Co. and Wells Fargo Bank N.A.
• Why: The bank allegedly improperly charged certain mortgage fees and failed to return the funds for more than a decade.
• Where: The Wells Fargo class action was filed in California federal court.

A new Wells Fargo class action lawsuit claims the bank improperly charged mortgage applicants certain fees during the loan origination process and failed to return the funds for more than a decade.

Plaintiff Lance Baird filed the class action complaint against Wells Fargo & Co. and Wells Fargo Bank N.A. on June 6 in California state court. The bank removed the case to California federal court on July 15.

According to the Wells Fargo class action, the bank has improperly charged mortgage applicants certain fees during the loan origination process and failed to return the funds for more than a decade.

The lawsuit claims Wells Fargo began sending letters to borrowers in December 2022, apologizing for incorrectly assessing return to float fees and offering cashier’s checks for the erroneously charged fees.

However, Baird claims the letters failed to provide an adequate explanation or accounting of the errors, leaving borrowers unable to determine the full extent of their damages.

Wells Fargo allegedly failed to adequately reimburse customers

According to the class action lawsuit, Wells Fargo’s actions were concealed until the letters were sent, and the bank’s attempt to settle the issue with insufficient refunds is inadequate.

The lawsuit claims Wells Fargo’s actions have left consumers facing ongoing harm and unreimbursed out-of-pocket losses.

Baird makes his allegations on behalf of a proposed class of all persons within California who received a letter from Wells Fargo alerting them that one or more return to float fees may have been incorrectly assessed during the loan origination process with a check enclosed to purportedly compensate for the error.

The Wells Fargo lawsuit asserts claims for violation of California’s Unfair Competition Law, civil theft/receiving stolen property, conversion, unjust enrichment and accounting.

He is seeking an order certifying the class action, compensatory damages, punitive damages, statutory damages, statutory penalties, costs of suit, attorneys’ fees, pre- and post-judgment interest and a jury trial.

Earlier, Wells Fargo and other companies agreed to a $19.5 million settlement to resolve allegations they violated California privacy laws by recording phone calls without consumers’ consent.

What do you think of the allegations made in this Wells Fargo class action lawsuit? Tell us in the comments.

Baird is represented by Brian S. Kabateck, Shant A. Karnikian, Anastasia K. Mazzella and Annie Martin-McDonough of Kabateck LLP and D. Joshua Staub and James C. D. Carr of Law Office of D. Joshua Staub.

The Wells Fargo class action lawsuit is Baird v. Wells Fargo & Co., et al., Case No. 3:25-cv-05959, in the U.S. District Court for the Northern District of California, San Francisco Division.

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