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Wells Fargo has been hit with another class action lawsuit that takes issue with its scheme to open bank accounts and other services in customers’ names without their knowledge, consent or approval.
Plaintiff Lee Blanchard says he has been a customer of Wells Fargo since 2005.
According to the class action lawsuit, Blanchard learned that Wells Fargo opened a new unauthorized account in his name, causing him to be assessed overdraft fees and other unauthorized fees and penalties.
Blanchard alleges that Wells Fargo has engaged in illegal sales tactics to maintain high levels of sales of its banking products. According to the Wells Fargo class action lawsuit, the business model relies on selling customers products called “solutions.”
“In order to achieve its goal of selling a high number of ‘solutions,’ Defendants imposed a sales quota on employees, and adopted policies that drove its employees to engage in unlawful acts to meet those unachievable goals, including, but not limited to, opening customer accounts, and issuing credit cards, without customer authorization,” the Wells Fargo class action lawsuit states.
Faced with these unachievable sales quotas, Wells Fargo’s employees allegedly engaged in high pressure sales tactics to push customers to open new accounts.
According to the Wells Fargo class action lawsuit, the bank misled customers by stating that certain products are only available in “bundled” packages that include additional accounts, insurance, annuities and retirement plans.
Employees also allegedly assigned PIN numbers to customers’ ATM cards in order to impersonate them on the company’s computers and enroll consumers in online banking and bill pay without their consent.
Blanchard asserts that Wells Fargo has engaged in these unlawful practices for many years. According to the Wells Fargo class action lawsuit, the company’s executives directed its lower-level employees to create as many new accounts as they could.
Wells Fargo allegedly opened more than one million accounts without the consent of their customers.
Wells Fargo agreed to pay $190 million in fines to the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency, and the City and County of Los Angeles.
However, Blanchard says that only a tiny proportion of this payment will be paid to affected Wells Fargo customers.
By filing the Wells Fargo class action lawsuit, Blanchard seeks to represent a Class of all Wells Fargo customers who had unauthorized bank accounts, credit card accounts or other banking “solutions” opened in their names.
The Wells Fargo class action lawsuit asserts violations of the Electronic Fund Transfer Act, violation of the New Jersey Consumer Fraud Act, conversion and unjust enrichment.
Blanchard seeks injunctive relief, restitution, disgorgement, damages, pre-judgment interest, attorneys’ fees and other relief deemed proper by the court.
Wells Fargo has recently been hit with other class action lawsuits over its scheme to open bank accounts without customers’ knowledge or consent.
Last month, a group of customers sued Wells Fargo over the practice. The bank was also sued by a group of former Wells Fargo employees who claim they were fired when they failed to meet unrealistic sales goals.
Blanchard is represented by Barry J. Gainey, Thomas J. McKenna and Gregory M. Egleston of Gainey McKenna & Egleston.
The Wells Fargo Unauthorized Accounts Class Action Lawsuit is Lee Blanchard v. Wells Fargo Bank NA, et al., Case No. 1:16-cv-07509, in the U.S. District Court for the District of New Jersey.
UPDATE: On Nov. 23, 2016, Wells Fargo asked a New Jersey federal court to compel arbitration in a proposed class action lawsuit brought by customers who allege the bank opened thousands of unauthorized accounts without their consent.
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44 thoughts onWells Fargo Class Action Says Bank Opened Unauthorized Accounts
UPDATE: On Nov. 23, 2016, Wells Fargo asked a New Jersey federal court to compel arbitration in a proposed class action lawsuit brought by customers who allege the bank opened thousands of unauthorized accounts without their consent.
My husband and I purchased gutters for our home with a company called Leaf Filter. We agreed upon the price and was told we would receive a payment booklet. Instead, we received the price of the gutters plus at least three thousand more on a Wells Fargo credit card that we did not sign up for. When we complained to the gutter company they told us this was how things were being done now. We are stuck paying interest on the total amount owed every month when we were lead to believe otherwise.
Same thing happen to me Exactly!
Sean walker, oakdale, ca
Same Thing happened to me……LeafFilter Salesman said my monthly payment would be $67/Month for 48 months. Not even close. Wells Fargo said it would 12.99% interest. And the payments are much higher and the Term is about 6 years.
This is a PREDATORY LENDING SCAM BY both LEAFFILTER AND WELLS FARGO AS OF MAY 2020.
I’m planning on paying monthly for a while and the stopping payments. I could care less about these PREDATORY LENDING SCAM ARTIST……. both LEAFFILTER AND WELLS FARGO AS OF MAY 2020.
The opened 3 accounts for me without my permission. After requesting that those accounts be closed months later I found out that they were still open. I was pissed off that I had to pay fees for a money market account and savings account. I only wanted a checking account.
I was a former Wells Fargo Financial Specialist, who was cross-trained as a Bank Officer. My direct supervisor, instructed me to place elderly clients in unsuitable investments, such as annuities with a 10 year surrender period, which is illegal and contrary to FINRA’s practices and/or guidelines. In addition, I was instructed to open bank accounts on individuals, who were not able to keep and/or maintain balances. According to my supervisor, Wells Fargo Bank made more money on overdraft fee(s), from “disadvantaged or poor customers”, then they did on accounts with six figures. When I refused to conduct illegal or unethical practices, I was directly threatened by my supervisor. When I would not comply, secondary to her threats, she gathered two other managers, and tried to pressure and further intimidate me. I sat through a two hour meeting, in which the all three managers tried to humiliate and berate me until I would comply. I defended myself, and continued to quote FINRA, BOI and Bank policies, and explained that I would be the one, who would suffer Criminal and Civil penalties.
Finally, I requested a transfer out of the Bank Branch and/or Department, with intent to transfer to the Securities Division. However, the minute I transferred out of my position, they imposed a “hiring freeze”, which meant, I was unemployed.
My wife and I were expecting our third child, and I was the primary bread winner, and when I lost my job, we were financially devastated. Unfortunately, we did not have the money for an attorney, nor did I have much of a chance winning the case against Wells Fargo Bank, because Virginia is a “Right to Work State”, which means, you as an employee have little to no protection.
As a result of my job loss, my wife and I experienced a “significant hardship”, which was compounded by the death of my father and brother. I was forced to reach out to Wells Fargo, which held my mortgage on my primary residence and equity line. According to the bank, I qualified for a Home Affordable Modification Program, (HAMP). I filled out the application, and submitted bank statements, two years worth of personal taxes, HOA documents, and of course a hardship letter. *(Approximately 150 pages of documents). All the information was sent to a Single Point of Contact, (SPOC), a banking specialist, who specifically handled the HAMP process. For the next six months, WF would lose documents, or within two weeks of starting the process, I was assigned to a new SPOC. According to the new SPOC, they could not locate the documentation or the pending application, as it was on the desk of the previous SPOC, so their recommendation was to restart the entire process. In a period of six months, I was assigned 5 new SPOCs. Over the next six months, Wells Fargo Bank accelerated our home to foreclosure, despite the fact, that I was in the HAMP process and/or program. Since Wells Fargo Bank was not responding to my written or phone requests, and with limited options, I was forced to file bankruptcy. Approximately, ten days after filing bankruptcy, I was informed by Wells Fargo’s attorney, the bank improperly filed the foreclosure, and this account, should not have been escalated. The law firm stated they had “concerns” on Wells Fargo actions, as a result, they halted the foreclosure action.
Unfortunately, the damage was done. All my creditors were notified of my Bankruptcy petition, as a result, my credit was destroyed. Leaving us no alternative, but to work with WF Bank and continue the HAMP process. A process which has turned out to be a five year odyssey, in which the bank continues to commit illegal and deceptive practices, to include providing fraudulent information to the Federal Bankruptcy Court. I have provided a list of my allegation below.
I have evidence to support the following allegations against Wells Fargo Bank N.A. (Please see below).
(1). Escalated Foreclosure Process with Incomplete/Improper Documentation.
(2). Predatory Lending Practices.
(3). Forced Placed Insurance.
(4). Failure to report interest payments to the Internal Revenue Service.
(5). Unfair and Deceptive Practices.
(6). Robo-signing of Mortgage/Legal Documents.
(7). Provided False and/or Misleading Information to the Federal Bankruptcy Court, (13th District).
(8). Made allegations the Trustee of the Federal Court misrouted mortgage/equity line payments, thereby causing a delay in Modification.
(9). Charging of Duplicate Fee(s).
(10). Illegally Modified Loan, after requesting the Federal Bankruptcy Court to deny a Bank approved HAMP Modification.
(11). Conducted Dual Tracking/Illusionary Trail Modifications
I hope an attorney on this site, or someone who reads these enclosed comments can refer me to a Class Action Attorney, able to pursue this case. Most of the attorney’s in Richmond, VA, where I live, want my case, but cannot accept it secondary to a “Conflict of Interest”, because Wells Fargo Bank has a Corporate HQ here, and they have acquired blocks of attorneys from the largest firms.
Sincerely,
Jonathan Lowe
jonathan_lowe@verizon.net
Here at Top Class Actions, we report on class action lawsuits and settlements around the country to bring awareness to you, our viewers. We do not actually file any lawsuits as we are not attorneys, and therefore cannot offer legal advice.
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We wish you the best of luck in your pursuit of justice!
I had a remodeling contract with a company and later found that Fargo financed it and created a credit card in my name. I knew nothing about it. I thought I was paying to Fargo directly. They can open a credit card account for me without having asked me if I wanted one first. Another remodeling company did the same thing. Is this how they operate? Is it legal?
This particular case is still moving through the courts and has not yet reached a settlement. Claim forms are usually not made available to consumers until after a court approved settlement is reached. We recommend you sign up for a free account at TopClassActions.com and follow the case. We will update the article with any major case developments or settlement news! Setting up a free account with Top Class Actions will allow you to receive instant updates on ANY article that you ‘Follow’ on our website. A link to creating an account may be found here: https://topclassactions.com/signup/. You can then ‘Follow’ the article above, and get notified immediately when we post updates!
You can also contact class counsel with any questions about this case, or your personal situation. Current counsel is listed at the bottom of the article and can be Googled for contact information. We wish you the best of luck in your pursuit of justice!
I had a remodeling contract with a company and later found that Fargo financed it and created a credit card in my name. I knew nothing about it. I thought I was paying to Fargo directly. They can open a credit card account for me without having asked me if I wanted one first. Another remodeling company did the same thing. Is this how they operate? Is it legal?
Please send me information
I have/had an account with wells fargo where they sold shares of my stock with out my authorization. Not one person would listen to me about it.
How do I will file a claim.
The case is still moving through the courts and has not yet reached a settlement. Claim forms are usually not made available to consumers until after a court approved settlement is reached. We recommend you sign up for a free account at TopClassActions.com and follow the case. We will update the article with any major case developments or settlement news! Setting up a free account with Top Class Actions will allow you to receive instant updates on ANY article that you ‘Follow’ on our website. A link to creating an account may be found here: https://topclassactions.com/signup/. You can then ‘Follow’ the article above, and get notified immediately when we post updates!
How will we find out if we were involved?