Daily Archives: June 19, 2018

Wells Fargo Can’t Duck Federal Class Action Suit

SANTA ANA, Calif. (CN) — A federal judge indicated Monday that he will allow nationwide litigation to go forward accusing Wells Fargo Bank of forcing unneeded auto insurance on borrowers.

However, in a tentative decision, U.S. District Judge Andrew J. Guilford said he may pare back the plaintiffs’ claims dramatically, including racketeering claims.

The litigation — a number of class actions from around the country consolidated in front of Guilford in Southern California — is only one of the problems to beset Wells Fargo since it admitted two years ago having pressured workers to sign customers up to unwanted bank accounts without their knowledge.

The bank has agreed to pay a $142 million settlement to those customers surreptitiously saddled with unwanted accounts. A federal judge in San Francisco approved the settlement May 30.

Read on.