Wells Fargo is adding a new class action to the list. Lance Baird, a customer of this bank, says the bank charged him — and others — with fees during the mortgage process that didn’t belong there. What’s more, he also said that Wells Fargo held on to that money for over ten years without ever making it right.
Class actions can sound big and messy, but they often start the same way: with one person asking a simple question — “Where did my money go?” And that’s what Barid did. So, let’s see this class action more in detail.
What exactly is Wells Fargo being accused of?
The lawsuit claims that these fees were charged during the loan origination process, that is, when people were in the process of applying for a mortgage. The fee in question is referred to as a “return to float fee.
Baird claims that Wells Fargo knew, or at least should have known, that these fees were incorrect or should not have been charged. Despite that, the bank allegedly did not inform customers or return the money for years.
2022
According to the lawsuit, only in December 2022 did the bank begin sending letters to some affected customers. In these letters, the bank apologized for the error and included a check as a refund for the improperly charged fees.
However, Baird states that:
- The letters did not include a clear explanation of the error.
- There was no breakdown of how much was charged or how the refund was calculated.
- Customers could not know if they had been fully reimbursed or only partially compensated.
What else does the lawsuit say?
Baird claims that the bank kept the issue hidden for years, and that the attempt to resolve it with checks was insufficient. As a result, he states that many people are still facing financial harm.
He filed the lawsuit on behalf of all people in California who received these letters from Wells Fargo, informing them that one or more “return to float” fees had been charged, along with a check enclosed as a supposed reimbursement.
What is Baird asking for?
The lawsuit requests several things, including:
- Class certification, so the case can represent a group of affected consumers.
- That Wells Fargo pays compensation to affected customers.
- That the bank pays punitive, legal, and statutory damages, as well as interest and court costs, including attorneys’ fees.
- That the case be decided through a jury trial.
The lawsuit also cites violations of various laws, such as:
- California’s Unfair Competition Law.
- Civil theft and receiving stolen property.
- Conversion (unauthorized use of money).
- Unjust enrichment.
- And a request for accounting, meaning the bank should provide detailed records of what was charged.
Has Wells Fargo faced other legal issues?
Yes. Wells Fargo and other companies previously reached a $19.5 million settlement to resolve allegations that they recorded customer phone calls without consent in California. That case was considered a violation of the state’s privacy laws.
The importance of this class action lawsuit
If you’ve ever had a mortgage with Wells Fargo, or received one of those refund letters, this lawsuit could directly impact you. It is not just about one person, it is about years of fees that may have been charged without proper explanation.
Even if you are not part of the case, it is a good reminder to pay attention to bank communications, question unclear charges, and keep records. When it comes to your money, you have a right to know what you’re paying for, and why. This case could help set the standard for how banks handle accountability going forward. Do you think Baird did okay by filing this class action?