Wells Fargo hit with recent class actions, agrees to settlement

Wells Fargo class action lawsuits overview: 

• Who: Consumers recently filed a trio of class action lawsuits against Wells Fargo. The bank also recently agreed to a class action settlement. 
• Why: The class action lawsuits involve claims regarding financial and insurance products, overdraft fees and bad check fees allegedly charged to consumers on the receiving end of bad checks. The settlement ended COBRA compliance claims. 
• Where: The class action lawsuits were filed in California and South Dakota federal courts. 

Consumers recently filed a trio of class action lawsuits against Wells Fargo over claims it charged customers unfair bad check fees, failed to notify them about overdraft fees and enrolled them in unwanted financial and insurance products without their consent. 

Wells Fargo also recently agreed to a class action settlement that resolved claims it failed to comply with COBRA regulations when sending notifications to participants and beneficiaries of its health plan. 

Wells Fargo enrolled customers in unwanted products, class action says 

A consumer filed a class action lawsuit against Wells Fargo earlier this month over claims the bank enrolled its customers in insurance and financial products without their consent. 

The class action lawsuit claims Wells Fargo has enrolled its customers in insurance and financial products they neither wanted nor consented to, could not have qualified for the purported benefits from and typically knew nothing about since at least 2008. 

The financial compensation Wells Fargo offered is inadequate and fails to fully compensate customers for fees, penalties, interest and other enrollment-associated costs, according to the class action lawsuit. 

The class action lawsuit claims Wells Fargo is guilty of unjust enrichment, invasion of privacy and conversion and violations of the Fair Credit Reporting Act and laws in Georgia and California. 

Class action claims Wells Fargo failed to properly notify customers about overdraft fees

In February, a pair of consumers filed a class action lawsuit against Wells Fargo over claims the company failed to properly notify its customers about overdraft fees. 

The class action lawsuit claims Wells Fargo fails to get written consent from its customers—as required by law—prior to opting them into products with overdraft fees and makes it hard for them to resolve claims involving its overdraft practices. 

Wells Fargo has a “long and documented history of troubling overdraft practices,” according to the class action. In 2012, the 9th Circuit confirmed a $203 million judgment against Wells Fargo over claims the bank misrepresented its overdraft practices.

Wells Fargo unfairly charges customers who receive bad checks, class action alleges

A group of consumers filed a class action lawsuit against Wells Fargo earlier this month over claims the bank unfairly charged fees to customers on the receiving end of checks that bounced. 

The class action lawsuit claims Wells Fargo charges a so-called deposited item return unpaid fee to customers who receive bad checks despite them having no part in sending the checks. 

“Plaintiffs were shocked when they were charged these fees because they did nothing wrong yet were penalized by Wells Fargo,” the class action states. 

Customers the bank charged after receiving bad checks could not have “reasonably known” the check they received was bad, according to the lawsuit. 

Wells Fargo to pay $1M COBRA notification settlement 

In January, Wells Fargo agreed to pay $1 million to end claims it failed to comply with COBRA regulations when sending notifications to participants of its health plan. 

Plaintiffs claimed participants and beneficiaries of Wells Fargo’s health plan declined to continue coverage because the bank sent improper and insufficient COBRA notices, according to the class action.

The class action settlement is now closed.

Have you been injured by Wells Fargo? Let us know in the comments.

Read About More Class Action Lawsuits & Class Action Settlements:

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• UFB class action claims bank’s high-yield accounts pay below current interest rates
• Citibank class action alleges company charges unfair returned check fees
• Chase Bank class action alleges charges predatory fees on returned deposits