Lawsuit Alleges Thousands of Consumers Were Misled by Wells Fargo Policies and Are Now Precluded from Seeking Justice
ONTARIO, Calif., Feb. 15, 2024 /PRNewswire/ -- On February 8, 2024, McCune Law Group (MLG), a national consumer firm dedicated to upholding consumer rights, filed a class action lawsuit alleging that consumers were misled by Wells Fargo's overdraft fee policies and that the American Arbitration Association (AAA) has allowed Wells Fargo to evade accountability.
The lawsuit alleges Wells Fargo violated Regulation E by charging consumers overdraft fees on one-time debit card and ATM transactions without proper disclosures and procedures. Regulation E aims to protect consumers from substantial harm caused by significant overdraft fees on relatively small dollar transactions by requiring direct, informed consent from consumers before financial institutions, like Wells Fargo, can charge customers overdraft fees on these transactions. Through May of 2022, Wells Fargo allegedly failed to satisfy Regulation E's requirements, leading to MLG to file individual arbitration demands with AAA, as required by Wells Fargo's account agreement, on behalf of thousands of customers who claim to have been victimized by Wells Fargo's unfair and unscrupulous overdraft policies. However, many of these individual consumers have been blocked from bringing arbitration and claim the pleading standards are stricter than federal court. Accordingly, the consumers now seek recourse through the court system.
MLG's class action lawsuit against Wells Fargo highlights an apparent unfair advantage for Wells Fargo, which has faced many lawsuits in previous years for allegedly unreasonable or unlawful practices. "The AAA's rules, though well-intentioned, are harming consumers who only aim to hold Wells Fargo accountable. We want to ensure Wells Fargo cannot hide behind red tape to avoid responsibility for unfair practices," remarks Founding Partner Richard McCune. The lawsuit also alleges that Wells Fargo engaged in many unfair fee practices, including charging consumers multiple fees on single transaction items and assessing overdraft fees on transactions that were authorized to be paid while a consumer's balance was positive but later posted with a negative balance due to intervening transactions. Both policies run counter to recent supervisory guidance from both the Consumer Financial Protection Bureau (CFPB) and the Federal Deposit Insurance Corporation (FDIC) which have expressed that both policies cause substantial harm caused to consumers. "This class action lawsuit against Wells Fargo highlights the importance of financial institutions adhering to regulations designed to protect consumers," states Emily J. Kirk, the MLG's Financial Services Practice Group Leader. "We are committed to seeking justice for the plaintiffs and holding Wells Fargo accountable for any further violations."
To obtain comments from Richard McCune or Emily Kirk regarding this case matter, contact McCune Law Group's Public Relations department at [email protected].
About McCune Law Group: MLG has supported consumer rights and fights for justice for more than 30 years. With offices throughout Southern California in Ontario, Redlands, Irvine, Palm Desert, and Beaumont, MLG has proudly risen to prominence as one of the largest and most successful consumer advocacy law firms in Southern California. MLG also boasts a national presence in the Midwest, Southwest, and East Coast, specializing in practices ranging from product liability and personal injury to civil rights and financial services. MLG's long history of success has resulted in more than $1 billion recovered for clients and an unbeatable team of inventive, innovative, and experienced attorneys. Visit mccunewright.com to learn more.
SOURCE McCune Law Group, McCune Wright Arevalo Vercoski Kusel Weck Brandt, APC
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