Wells Fargo has agreed in principle to pay $110m to settle a class action lawsuit over retail sales practices.
The lawsuit was filed in May 2015 in the Northern District of California.
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The settlement will include anyone who claims that the bank opened an account, enrolled them in a product or service, or submitted an application on their name without their consent from January 1, 2009 to the date the settlement agreement is executed.
Wells Fargo said that the settlement amount will be set aside for customer remediation.
“After attorneys’ fees and costs of administration, class members will be paid first for out-of-pocket losses, such as fees incurred due to unauthorized account openings. Amounts remaining after out-of-pocket losses will be split among all claimants, based on the number and kinds of unauthorized accounts or services claimed,” the bank said.
Wells Fargo president and CEO Tim Sloan said: “This agreement is another step in our journey to make things right with customers and rebuild trust.
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By GlobalData“We want to ensure that each customer impacted by our sales practices issue has every opportunity for remediation, and this agreement presents an additional option. We continue to encourage customers to contact us directly so that we can act quickly to refund fees and address any concerns.”
In September 2016, Wells Fargo was fined $185m by US regulators for illegal sales practice of secretly opening unauthorised deposit and credit card accounts. The bank announced plans to drop all product sales goals in retail banking soon after the fine was imposed.
