$5,000 Wells Fargo Settlement: Who Qualifies and When Will You Receive Payment?

Wells Fargo, the largest banking institution in the United States, has been embroiled in many controversies and legal proceedings in its history. The most famous scandal among them was the opening of millions of fake bank accounts without the permission of customers. This mess not only damaged the reputation of the bank, but also affected millions of customers financially and mentally.

To rectify this situation and compensate the affected customers, the bank has announced a special $5000 Settlement Scheme. This article deals with the information of the same settlement, eligibility conditions, payment process and important advice.

1. Background of Wells Fargo Scam

In 2016, it was shockingly revealed that Wells Fargo employees had opened millions of fake bank accounts without the knowledge and consent of customers. The sole purpose of this was to meet the bank’s aggressive sales targets. Through these fake accounts, customers were charged for services they never asked for.

After this revelation, several government agencies including the US Consumer Financial Protection Bureau (CFPB), Office of the Comptroller of the Currency (OCC) took action against the bank. The bank was bombarded with fines and lawsuits. In 2018, Wells Fargo made a comprehensive settlement to all customers who were affected by this scam, which included compensation for financial losses as well as emotional losses.

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2. Purpose and nature of $5000 settlement

This settlement scheme has been created to compensate the affected customers. The maximum amount that can be given in this is $5000, which depends on the person’s situation and the severity of the loss.

Under this scheme, not only financial loss will be compensated, but relief will also be given to those whose credit rating was damaged or who suffered mental stress and reputation damage.

3. Eligibility Criteria for Wells Fargo Settlement

(a) When did these fraudulent transactions happen?

If your account was opened without permission by Wells Fargo between 1 January 2002 and 8 September 2016, then you may be eligible for this settlement.

(b) Which services were affected?

Customers in whose name checking or savings accounts, credit cards, loans, automobile finance etc. services were started without permission will be considered eligible.

(c) Proof of fake account opening

You will need to provide proof that Wells Fargo employees opened a fake account in your name. You can verify this by checking your old account reports or contacting the bank.

(d) What if you received a payment before?

If you have already received some amount under another settlement, you may still be eligible for this scheme. However, your amount received will be adjusted on that basis.

(e) Credit score or financial loss

If you have a bad credit report, or have suffered financial loss due to fake accounts, you can definitely join this scheme.

4. How to know if you are eligible?

(a) Visit the official website

Wells Fargo has launched an official website where you can get information on eligibility, claim form and process.

(b) Check account details

If you had a Wells Fargo account between 2002 and 2016, you can check old statements or transaction history.

(c) Get help from the bank

If you are not sure whether you are eligible or not, contact the bank directly. Letters have already been sent to many customers from the bank.

5. Settlement claim and payment process

(a) How to make a claim?

Eligible customers can make a claim by filling a simple form. This form can be filled online or through post. In this, you have to provide your account details, dates of fraudulent transactions and supporting documents.

(b) When will the payment be received?

The payment process is not simultaneous, as thousands of claims have to be reviewed. However, payments may be made within a few weeks or months of the claim being accepted.

(c) Types of payments

• Cash compensation: Lump sum or installment payments.
• Credit services: Additional services to improve credit scores or compensate for other damages.

6. How much will you get paid?

\$5000 is the maximum amount, but not everyone will get it. How much you will get will depend on the following:

• The number of fake accounts opened in your name.
• The amount of your financial loss.
• The severity of your credit score or mental trauma.

Customers who have suffered more losses will get a higher amount.

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Conclusion: What to do now?

Millions of people had their lives devastated because of the Wells Fargo scam. Such settlement proves to be like a reprieve to those customers who got trapped in to fake accounts without any fault of theirs. Whether you believe that you might have been a victim, check your eligibility and file your claim at the earliest.

This may take longtime, however, you can subsequently achieve justice and compensation.

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