In the six months since Wells Fargo & Co. acknowledged opening millions of accounts customers didn’t authorize, the bank has junked its old sales incentives, replaced its chairman and chief executive, and paid $185 million in fines.
Bank customers, meanwhile, have received just $3.2 million in refunds. But soon they’ll be in line for much more.
On Tuesday, the bank agreed to pay $110 million to settle a class-action lawsuit filed two years ago, a deal that could also put to rest 11 other class-action cases, many filed after the bank’s practices were thrown into the national spotlight last September.
The settlement, if approved by a federal judge in San Francisco, would provide payouts to all Wells Fargo customers who say they have been victims of the bank’s bad practices from 2009 until now.
Those payments would be on top of any money customers have already received as part of a settlement last year with the Los Angeles city attorney’s office and federal regulators.
So far the bank has paid refunds to holders of about 130,000 accounts.
The bank recently fired four senior managers, the highest-profile departures since former Chairman and CEO John Stumpf resigned last year.
Rat boss Stumpf received no punishment and walked away with millions. Wells Fargo makes us want to puke.
Read the whole story in the LA Times