Wells Fargo Bank Fund Withholding Class Action Lawsuit

A federal class action lawsuit claims that Wells Fargo engages in “deceptive and fraudulent bank tactics” by delaying to send wire transfers and delaying to make deposited funds available for excessive periods of time in order to generate interest on the funds.

Plaintiff Gerald T. Reilly alleges in the Wells Fargo Bank class action lawsuit that at various times in 2009, 2010 and 2011, Wells Fargo Bank accepted cash funds from him for the purpose of completing wire transfers. “Without adequate notice or reasonable explanation, Wells Fargo failed to transfer such funds into the intended recipients’ accounts and instead kept the funds for periods of time ranging from 24 to 72 hours,” he says in the class action complaint.

 

Reilly claims that on three separate occasions, he asked about the location of the funds during the illicit holding periods, and was informed by Wells Fargo employees that the funds were either transferred into a Wells Fargo “sweep account” or a Wells Fargo “holding account.”

“Plaintiff did not authorize Wells Fargo to transfer any funds into such accounts, was not informed of Wells Fargo’s intent to do so, and did not possess any ownership interest in such accounts,” the Wells Fargo class action lawsuit states.

“In a similarly deceptive fashion, Wells Fargo has, on numerous occasions in 2010 and 2011, accepted checks from the Plaintiff, debited Plaintiff’s account in the amount of the check, and held the funds for unreasonable periods of time without crediting the payee’s account. Plaintiff inquired about the location of the funds — having been removed from Plaintiff’s account but not yet deposited into the payee’s account — and was again told about Wells Fargo’s elusive ‘holding account.’”

The Wells Fargo Bank class action lawsuit is brought on behalf of all persons or entities in Texas who have suffered as a result of deceptive and these fraudulent bank tactics. It is seeking damages, interest and other relief for Class Members for fraud, negligent misrepresentation, conversion, breach of contract, unjust enrichment, violations of the Texas Deceptive Trade Practices Act (DTPA), and more.

A copy of the Wells Fargo Bank Fund Withholding Class Action Lawsuit can be read here.

The case is Gerald T. Reilly v. Wells Fargo Bank, National Association, Case No. 5:11-cv-743, U.S. District Court, Western District of Texas, San Antonio Division.