City of Los Angeles Files Lawsuit Alleging Wells Fargo Fraud

Allegations of fraud against Wells Fargo are reported in a May 4, 2015 Los Angeles Times article. The city of Los Angeles has filed a Wells Fargo fraud lawsuit claiming “unfair, unlawful and fraudulent conduct” on the part of the bank that resulted in unauthorized fees and damaged credit to affected consumers.

If you have been a victim of fraud on the part of Wells Fargo or another financial institution, contact Attorney Group for California for more information about your options. We can answer your questions in a free, no-obligation consultation, and if you have a case, we can connect you with an affiliated attorney. The time to pursue a claim is limited, so contact us today.

Wells Fargo Allegedly Victimized Customers

According to the LA Times article, allegations against Wells Fargo include that the company and its employees “violated state and federal laws by misusing confidential information and by failing to notify customers when their personal data were breached.” Former employees interviewed for the article describe:

[H]ow staffers, fearing retribution from managers, begged friends and family members to open ghost accounts; opened accounts that they knew customers didn’t want; forged signatures on account paperwork; and falsified phone numbers of angry customers so they couldn’t be reached for customer satisfaction surveys.

According to the lawsuit, when the unauthorized fees were not paid, Wells Fargo turned customers over to collection agencies.

Bank Failed to Resolve Problems Caused by Its Bankers, According to Lawsuit

According to Wells Fargo, the actions were taken by a limited number of employees who were disciplined or fired, but the city alleges that Wells Fargo took only “token efforts … to prevent customer abuses.” The city also alleged the following:

On the rare occasions when Wells Fargo did take action against its employees for unethical sales conduct, Wells Fargo further victimized its customers by failing to inform them of the breaches, refund fees they were owed, or otherwise remedy the injuries that Wells Fargo and its bankers have caused.

Affected Customers May Be Entitled to Compensation

The city of Los Angeles’ lawsuit reportedly seeks an injunction to prevent similar conduct in the future by Wells Fargo, and $2,500 per violation in penalties along with restitution for affected consumers. Attorneys note that remedies will most likely not be limited to those sought in the city’s lawsuit.

Additional damages to which affected customers may be entitled could be based on costs associated with credit monitoring and impacted credit reports, deceptive and unfair trade practices, and punitive damages to punish the wrongdoing and prevent similar conduct in the future. Bank customers who believe they have been the victims of fraud are encouraged to seek legal counsel to learn their rights.

The Time to Pursue a Claim is Limited. Contact Us Today.

If you have been affected by Wells Fargo fraud or other wrongdoing by a bank or financial institution, contact Attorney Group for California today to learn more. We can answer your questions, and if you have a case, we can connect you with an affiliated attorney. Your call is free, confidential, and without obligation. State laws limit the time you have to pursue a claim, so contact us today.