Wells Fargo confronts a fresh class-action lawsuit centered on their handling of the fake-accounts issue

In a recent development, a class-action lawsuit has been filed against Wells Fargo in a San Francisco federal court by Amanda Gonzales, a schoolteacher from New Mexico. The lawsuit alleges that the bank's local branch representatives and customer care staff were unable to provide a clear answer when she asked about being enrolled in an insurance product covering accidental deaths.

The complaint further alleges that Wells Fargo did not do enough to reimburse customers affected by its 2016 fake-accounts scandal. The Consumer Financial Protection Bureau (CFPB) issued a directive stating that customers who were mistakenly enrolled in unwanted products after the scandal were not adequately compensated.

The lawsuit also alleges that Wells Fargo violated the federal Fair Credit Reporting Act, as well as consumer protection laws in California and New Mexico. The bank faces several enforcement actions connected to the 2016 fake-accounts scandal, including a $1.95 trillion asset cap imposed by the Federal Reserve, which has remained in place for six years.

Wells Fargo's statement claims that the bank has placed heavy emphasis on remediating customers for past practices. However, the complaint notes that the bank intends to "avoid, reduce and delay its ultimate liability and sweep under the rug its long-standing, intentional misconduct" by switching the burden on the customers.

The lawsuit claims that Wells Fargo's recent letters to customers urging them to contact the bank if they were unknowingly enrolled in unwanted products were vague and confusing. The complaint alleges that the bank intentionally made these letters vague and confusing in the hopes that customers would discard them rather than realize they may have valid claims.

In response to the lawsuit, Wells Fargo stated that they are still reviewing the claims and cannot share specifics at this time. The bank's statement asserts that the bank is a different company today, with new people, structure, processes, controls, and culture in place.

Marc Dann, Gonzales' lawyer, expressed concern about Wells Fargo's efforts to resolve the enforcement orders, stating, "It's a high priority to get out from these enforcement orders. In typical Wells Fargo fashion, they're doing the minimum." The complaint seeks $5 million for recipients of the letter.

In a separate incident, it was reported that Wells Fargo offered Gonzales $200 to resolve her claim. The complaint also does not provide new information about the bank's efforts to avoid, reduce, and delay its ultimate liability.

The ongoing lawsuit highlights concerns about the bank's practices and its commitment to rectifying past mistakes. As the case progresses, more details are expected to emerge, shedding light on the allegations against Wells Fargo.

Wells Fargo confronts a fresh class-action lawsuit centered on their handling of the fake-accounts issue