Judge Orders $142 Million Final Settlement for Wells Fargo Fake Accounts Scandal
In the final round of the class action cases stemming from the Wells Fargo fake accounts scandal, U.S. District Judge Vince Chhabria has approved a $142 million settlement for affected accountholders. This will be an average of just $35 per person. Payouts will vary based on how each person was damaged by the events, such as the reduction of credit score or the number of fake accounts.
The judge said in the hearing this is not an ideal situation. “There’s no doubt this is an imperfect solution, but what’s the alternative? I do believe this settlement is fair and there was a conscientious effort by both parties to come up with the least-worst solution for what’s happened here.”
Wells Fargo has already paid $185 million in fees to the CFPB for this matter, and fired over 5,000 employees. The bank has revamped its risk management department in compliance with a sanction from the Federal Reserve.
The original deadline to file a claim was February 3, 2018, but that has been extended to July 7, 2018. Affected accountholders may go to WFSettlement.com to file a claim online, or they may file a claim by mail. The forms must be completed or postmarked by the deadline in order to qualify.
There is no definitive time frame for the refunds. After all appeals and final approvals are settled, the bank will run damage calculations with the credit bureaus. Then, they will issue checks to eligible members who have filed a claim by the deadline.