Wells Fargo, one of the largest banks in the United States, has faced multiple class action lawsuits over the years, resulting in billions of dollars in settlements.
The lawsuits have addressed various issues, including unauthorized accounts, unfair overdraft fees, mortgage practices, and securities fraud.
Here’s a breakdown of Wells Fargo’s biggest settlements and how customers, investors, and homeowners may be eligible for compensation.
Unauthorized Accounts Settlement
One of the most infamous scandals involving Wells Fargo was the fake accounts scandal in which employees opened millions of accounts without customer authorization. In 2016,
Wells Fargo admitted to creating unauthorized accounts to meet sales targets. This led to a $142 million settlement to compensate customers who were charged fees on fraudulent accounts.
Customers who had Wells Fargo accounts between 2002 and 2017 may be eligible for compensation. For more details, visit the Wells Fargo claims website.
$1 Billion Securities Fraud Settlement
In March 2023, Wells Fargo agreed to a $1 billion settlement in a class action lawsuit that accused the bank of misleading investors about its regulatory compliance following the fake accounts scandal.
Shareholders alleged that Wells Fargo falsely claimed it had improved its business practices while still facing regulatory scrutiny.
More information on securities fraud settlements can be found at Cohen Milstein’s website.
$185 Million COVID-19 Mortgage Forbearance Settlement
During the COVID-19 pandemic, many homeowners were placed into forbearance programs without their consent, preventing them from refinancing or restructuring their loans. In 2024,
Wells Fargo reached a $185 million settlement over allegations that it automatically put mortgages into forbearance without informing borrowers.
Affected borrowers can file a claim before October 10, 2025 via the Top Class Actions website.
$19.5 Million Call Recording Settlement
Wells Fargo faced a lawsuit alleging that it recorded phone calls without customer consent, violating California’s privacy laws. The bank agreed to a $19.5 million settlement in 2023 to resolve the claims.
Those who received calls from Wells Fargo-related services between October 22, 2014, and November 17, 2023 may qualify for compensation. More information can be found at Claim Depot.
$3 Billion Unauthorized Sales Practices Settlement
In February 2020, Wells Fargo agreed to pay $3 billion to resolve a U.S. Department of Justice investigation into fraudulent sales practices.
The settlement included a $500 million civil penalty, which was distributed among affected investors through the Securities and Exchange Commission (SEC).
Read the official DOJ statement at Justice.gov.
$203 Million Overdraft Fees Settlement
Wells Fargo was found guilty of reordering transactions to maximize overdraft fees, leading to a $203 million settlement in 2010.
The lawsuit accused the bank of processing transactions in a way that caused customers to incur more overdraft charges than they would have otherwise.
Customers who were charged excessive overdraft fees between 2002 and 2010 were eligible for compensation.
$5.4 Billion Mortgage Foreclosure Settlement
In 2012, Wells Fargo was part of a $26 billion settlement with the federal government and 49 states over illegal foreclosure practices, including “robo-signing” of documents.
Wells Fargo’s portion of the settlement was $5.4 billion, which included financial relief for homeowners who were wrongfully foreclosed upon.
For foreclosure assistance, visit ConsumerFinance.gov.
How to File a Claim
If you believe you may be eligible for compensation in any of these settlements, follow these steps:
- Check the official settlement websites for details on claim eligibility and deadlines.
- Gather necessary documentation, such as account statements, mortgage records, or transaction histories.
- Submit your claim online before the deadline to ensure you receive any compensation owed.
- Stay updated by subscribing to legal notifications from financial consumer protection agencies.
Final Thoughts
Wells Fargo has paid billions in settlements due to widespread unethical practices affecting millions of customers and investors. While these class-action lawsuits help compensate those affected, they also highlight the importance of regulatory oversight in the banking industry.
Customers should stay informed about their rights and follow legal updates to ensure they receive fair treatment from financial institutions.
For official information on banking consumer rights, visit:
If you believe you were impacted by Wells Fargo’s business practices, now is the time to file your claim before the deadlines expire.
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.
A senior at Yale-NUS College with interests in developmental and labour economics, as well as creative non-fiction and poetry. Currently, I’m studying as an Economics major and an Arts and Humanities minor (focusing on Creative Writing) with heavy involvement in the Singaporean journalism scene and involved in research on economic history and educational policy. I’m working as an author for The Octant, Yale-NUS’ student publication, as a writer for Wingspan, Yale-NUS’ alumni magazine, and as a tutor for the NUS Libraries Writer’s Centre. | Linkedin