National Financial Litigation Firm Bringing Lawsuit Against Wells Fargo

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McCune Law Group, McCune Wright Arevalo Vercoski Kusel Weck Brandt, APC

Dec 15, 2022, 11:29 ET

Lawsuit Alleges Wells Fargo Misusing Arbitration to Avoid Responsibility

ONTARIO, Calif., Dec. 15, 2022 /PRNewswire/ -- McCune Law Group, McCune Wright Arevalo Vercoski Kusel Weck Brandt APC (MLG) – a national law firm specializing in Financial Services and Class Actions – has filed a lawsuit on behalf of four individuals who have been allegedly prevented from engaging in the type of expedited arbitration promised by Wells Fargo in their contracts. The complaint alleges that Wells Fargo avoids legal liability by forcing consumers into arbitration, but then allegedly obstructs the process so profoundly that consumers cannot get the resolution they were promised.

This case has significant implications. There has been national attention to the disputes between consumers and banks about the use of contractual arbitration and class action bans to allegedly deny consumer class action cases and effective remedies for consumers. "This case sheds light on how the actual workings of Wells Fargo arbitrations (as opposed to theoretical workings of an arbitration) operate to deny customers remedy for wrongdoing," remarks MLG Partner Richard D. McCune, "It is not the arbitration clause at issue here. It is Wells Fargo's hidden defense of arbitrations that makes arbitration unfair to consumers."

If successful, this case could establish an obligation on Wells Fargo to arbitrate their cases in a way consistent with how they portray arbitration in their contract. The Consumer Financial Protection Bureau (CFPB) has not weighed in on the case or the alleged tactics of Wells Fargo in arbitration, but, as the federal regulatory entity in charge of protecting consumers from unfair practices of banks, it may have some interest in the case. The Biden administration and the CFPB have recently made clear that the CFPB is looking closely at banks practices relating to alleged surprise overdraft fees.

Each of the four plaintiffs involved in the lawsuit have been allegedly stymied for almost a year, with no end to the stalemate in sight. When these individuals opened their accounts, Wells Fargo claimed that "arbitration is beneficial because it provides a legally binding decision in a more streamlined, cost-effective manner than a typical court case." But in practice, the complaint alleges, Wells Fargo blocks access to an efficient or cost-effective dispute resolution.

These individuals are just four of thousands of claims that are allegedly unable to even get an arbitration hearing, much less a decision on their claims. "It is bad enough that Wells Fargo has engaged in unfair overdraft practices, but now Wells Fargo has first forced customers to arbitrate as individual cases, and then obstructed the arbitration process. It is clear by how Wells Fargo is defending these arbitrations that it not about the promised streamlined and cost-effective resolution of claims, it is about using the arbitration process to attempt to deny any remedy for consumers," says McCune.

About McCune Law Group, McCune Wright Arevalo Vercoski Kusel Weck Brandt APC: McCune Law Group has a deep history of success for its clients against banking institutions, including a $203 million verdict against Wells Fargo Bank and a $70 million settlement against TD Bank MLG maintains California offices in Ontario, San Bernardino, Carson, Palm Desert, and Irvine and supports its national practice with offices in Illinois and New Jersey. Visit mccunewright.com for more information. 

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SOURCE McCune Law Group, McCune Wright Arevalo Vercoski Kusel Weck Brandt, APC