The lawsuit against Wells Fargo in s recent decision to waive fees for many account holders was resolved last week without any major penalties being levied. This decision, however, left many frustrated because it is only now, after the resolution, that an actual lawsuit can be filed. An investor with large funds who has been a victim of illegal, predatory lending activities by Wells Fargo is expected to file a complaint against the bank with the U.S. attorney’s office. Many other retail investors are expected to follow suit. It is expected that these lawsuits will further enflame Wells Fargo and further force the company to come out with a concrete plan to correct its wrongful actions and restore investor confidence in the bank.
Wells Fargo was found liable in a $LIBORICO Act lawsuit filed by the Federal Deposit Insurance Corporation (FDIC). The lawsuit charged that the bank violated the anti-trust laws that were enacted to prevent banks and other financial institutions from engaging in unfair and deceptive acts or activities. The original lawsuit was filed by Philadelphia accountant Arthur Levitt. The SEC also filed a similar lawsuit against Wells Fargo in May, bringing the largest ever class action lawsuit against a bank.
According to news reports, the class action lawsuit will be filed by plaintiffs with annuity rates exceeding $10 million. Classes in this case are said to include all current and former homeowners that received foreclosure notices between 2021 and present. Additionally, it is expected that additional damages may be awarded if the class action lawsuit is successful. One such suit was brought by a retired couple who received a notice of default on their FHA home loan in 2021. At that point, they had only one month to save the house or face losing it to foreclosure. A number of other plaintiffs are also expected to join the class action lawsuit.
Another lawsuit against Wells Fargo has been filed by the Pennsylvania State Attorney General’s Office. In that suit, the plaintiffs are accusing the bank of discriminating against members of the elderly when processing their loan applications. Specifically, the complaint points out that plaintiffs did not receive a personalized credit counseling from Wells Fargo before their loan modification applications were rejected, even though they had already completed personal credit counseling.
No final judgment has been announced in either case, as the parties are negotiating settlements. Plaintiffs would have to present proof of class-action status before their settlement agreement is accepted by the court. It is also important to note that no monetary penalties have been assessed yet in either case. In addition, class members can ask the court to allow them to file a counter-claim based on the fact that Wells Fargo did not provide personal counseling as required by the courts. A Wells Fargo representative can be called to confirm whether or not such personal counseling is available.
If you have filed a lawsuit against Wells Fargo, you will want to discuss your case with an experienced personal injury attorney who has experience working in class-action litigation. An attorney can help you determine if you have a strong case, and he or she can discuss the best course of action to take with your legal representatives. In addition, such an attorney can help you develop a suitable settlement agreement that will ensure that you receive the most substantial recovery possible.