Wells Fargo announced details of the settlement Tuesday, saying that “all customers” who had accounts opened without their permission dating as far back as 2009 will receive compensation in addition to refunds the bank has already paid out.
The bank also said it would waive its right to third-party arbitration, which would’ve allowed it to use a private mediator rather than a court in dealing with customer complaints, citing a desire to “move forward and avoid continued litigation.”
The settlement is expected to cover several lawsuits, including one filed in May 2015 in the Northern District of California, a separate one entered last September by Wells Fargo customers, in addition to at least 10 others.
Customers who believe Wells Fargo may have opened a fake account in their name don’t need to take any action yet because a court still needs to sign off on the settlement agreement. Once preliminary approval is received, Wells Fargo will send out a notice explaining the process for customers to make claims.
The $110 million will be used first to compensate customers for out-of-pocket losses, which includes fees incurred due to unauthorized account openings, and the remainder will be split among class members “based on the number and kinds of unauthorized accounts or services claimed.”
These payouts are in addition to the approximately $3.2 million Wells Fargo has already paid to customers over 130,000 potentially unauthorized accounts. That works out to a refund of about $25 per account.
A Wells Fargo spokesman said that “in most cases” customers who received a remediation check are eligible for compensation through the settlement.
Source: The Daily Beast