Judge Approves Wells Fargo’s $142 Million Proposed Settlement
The Wells Fargo fake accounts scandal may finally be coming to a close. A federal judge in San Francisco approved the proposed $142 million settlement, saying the amount was “fair, reasonable and adequate.”
Earlier this year, the settlement was increased from $110 million to $142 million to cover unauthorized accounts dating back to May 2002. Wells Fargo has already paid $185 million in fees and reimbursements to the Consumer Financial Protection Bureau, and they have issued $180 million in pay reductions and clawbacks from former executives. The bank says the new settlement should resolve most or all of the pending class actions against them.
The final hearing for the settlement is schedule for January 4, 2018. Wells Fargo will send claim filing information to potential recipients over the coming months, but they will not issue any payments until after the court hearing.
The bank has been working to rebuild its reputation after the scandal. They have fired more than 5,300 employees associated with fake account creations, and soon plan to launch a new ad campaign explaining the steps they have taken to resolve these issues. In total, 2.1 million credit card and bank accounts were opened without customers’ consent, resulting in unauthorized fees and credit score fluctuations. Wells Fargo currently has more CFPB complaints than any other company but hopes to overcome those obstacles with the upcoming settlement.