Wells Fargo's $142m fake-accounts settlement is finally official

by Ryan Smith18 Jun 2018

Wells Fargo has received final approval to settle a class-action lawsuit over its fake-accounts scandal.

The bank received preliminary approval last July to settle the suit for $142 million. The settlement is meant to compensate millions of customers who had accounts opened in their name without their knowledge or approval. A California judge has now granted final approval to the settlement, according to a report by PYMTS.com.

Wells Fargo CEO called the approval “a significant step forward in making things right for our customers and restoring trust (of) Wells Fargo’s stakeholders,” Wells Fargo CEO Tim Sloan said.

Affected customers have until July 7 to claim funds, according to PYMTS.com.

The fake-accounts scandal kicked off a series of black eyes for the banking giant. Wells Fargo has also been accused of charging mortgage customers improper fees, charging auto loan customers for unnecessary insurance, botching the refunds related to those scandals, and discriminatory mortgage lending.

In May, the bank agreed to pay $480 million to settle a class-action lawsuit accusing it of securities fraud, even as it denied the claims in the suit. That agreement is still awaiting court approval.

 

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