Wells Fargo To Pay Out $110 Million in Settlement
Wells Fargo was sued because it employees allegedly opened up more than 2 million accounts for customers without their permission. According to KSTP, the bank is going to pay out $110 million to settle that suit.
Authorities stated that bank employees were put under high pressure to open bank and credit card accounts for customers without their permission. According to the report, the settlement will involve customers since January 1, 2009. And if the court approves this, it should also settle 11 other class-action suits that are pending.
The first thing to be paid is the attorneys' fees, and then $110 million will first go to cover any customers' out-of-pocket losses or fees that they may have incurred due to the unauthorized accounts. All remaining money will be split among the all the customers involved.
Wells Fargo has cut bonuses to executives, and laid off employees are left hanging after news of this settlement. The bank already announced in January that it will be closing 400 locations over the next two years.