A Wells Fargo California Class Action Lawsuit involves an individual who has suffered financial harm as a result of lending and other financial transactions with Wells Fargo Bank. The class action lawsuit was filed by the California National Credit Union, or the National Consumer Credit Union, on behalf of the customers of Wells Fargo who were either borrowers or lenders. The complaint alleged that Wells Fargo charged a higher interest rate and applied fees and penalties to accounts that they did not close. The class action lawsuit also claimed that Wells Fargo created obstacles and set up transactions with borrowers in order to force them into closing their accounts.
The class action lawsuit was able to force Wells Fargo to settle the lawsuits for millions of dollars. However, Wells Fargo was not willing to admit to any wrongdoing. The bank has tried to avoid paying the claims by pointing out that the claims have no merit. However, even with that excuse, the class action lawsuit has been able to make life more difficult for Wells Fargo. Due to the class action lawsuit, Wells Fargo is not able to operate as usual. They have also been forced to cover costs for the legal battle.
The class action lawsuit also alleged fraud and predatory lending practices at Wells Fargo. During the period when the class action lawsuit was filed, Wells Fargo allowed many homebuyers to purchase subprime mortgages from loans that did not qualify for prime rates. Subprime mortgages are usually associated with credit profiles that are not ideal. The suit alleged that this was illegal and that Wells Fargo knew about these practices and did nothing to stop it. The court ordered Wells Fargo to pay a fine to the Federal Government and to cover legal fees for the class action lawsuit.
The lawsuit also claims that there are over two hundred thousand mortgages that are still outstanding at present. At present, the subprime mortgage crisis is an ongoing problem. This crisis has been seen by homebuyers all over the country. Many of them were turned down for the subprime mortgage loans and have had to suffer the consequences.
This class action lawsuit is one of the largest settlements ever received by a large financial institution. The financial regulators received $1.75 billion due to the fraudulent practices of Wells Fargo. Many other banks have been found to be involved in similar activities. This new ruling will only be enforced if other banks are also subject to the same laws governing Wells Fargo. Other large financial institutions could see their share of settlement awards.
This is not the first time that Wells Fargo has settled a class action lawsuit. In fact, they have settled a number of cases over the last few years. Recently they have settled a case brought by the California Department of Insurance. That case involved a woman who claimed that her home was ruined by an insurance scam. A judge ordered Wells Fargo to pay her damages and the company is appealing that decision. This settlement is just another example of Wells Fargo standing behind its product.