Lawsuit Accuses Wells Fargo of Wrongfully Charging Fees To Potential Clients, Failing to Adequately Reimburse Victims: Report

A new class action lawsuit accuses US banking giant Wells Fargo of wrongfully charging undisclosed fees to potential clients for more than a decade and then attempting to cover it up.

In a complaint led by Californian homeowner Lance Baird, Wells Fargo is alleged to have engaged in a deliberate effort to short-change borrowers and obscure the harm, reports Credit and Collection News.

The suit alleges Wells Fargo improperly charged mortgage applicants and later sent vague letters about the error, offering partial compensation.

Although the bank acknowledged the issue, Baird says the letters left victims in the dark by failing to explain how the errors happened, when the issue occurred and how exactly much money the bank erroneously charged.

“This lack of transparency, Baird claims, leaves consumers unable to verify the actual damages they may have suffered.”

The suit is on behalf of everyone in California who received a letter from the bank on the issue.

Plaintiffs are seeking compensatory damages, punitive damages, statutory damages, statutory penalties, costs of suit, attorneys’ fees, pre-and post-judgment interest and a jury trial.