Nearly $2 million awarded to Louisiana following multi-state Wells Fargo fake-accounts scandal

Nearly $2 million awarded to Louisiana following multi-state Wells Fargo fake-accounts scandal
Wells Fargo

BATON ROUGE, LA (WAFB) - The state of Louisiana will receive a $1,911,733.65 lump sum payment by the end of the second week of January 2019, according to the Office of the Louisiana Attorney General.

The money is part of a $575 million settlement between Wells Fargo and attorney generals from all 50 states and the District of Columbia.

News first broke in 2016 that Wells Fargo employees allegedly opened millions of fake, unauthorized bank accounts using customer’s personal information in order to meet aggressive sales goals.

The company later acknowledged reports that it sold auto insurance and other financial products to customers who didn’t need them, according to the Associated Press. Those revelations led to several layoffs and restructuring of operations which will continue over the next three years, reports say.

“Attorney General Jeff Landry helped to bring this suit in an effort to protect Louisiana consumers. It should serve as a warning to any company that engages in unfair and deceptive trade practices,” The Attorney General’s Office said in a written statement.

“We truly regret and take full responsibility for any instances where customers received products they did not request. We are fully committed to doing everything possible to fix this issue, strengthen our culture, and take the necessary actions to restore our customers’ trust,” Wells Fargo wrote in a FAQ page on it’s site.

In addition, the company has entered into a $142 million class action settlement covering all persons who claim that Wells Fargo opened, without their consent, a consumer or small business checking or savings account or an unsecured credit card or line of credit, or enrolled them in certain identity theft protection services, between May 1, 2002 and April 20, 2017.

The company says it is compiling a list of costumers impacted.

Those customers will be notified by both Wells Fargo and the court-appointed claims administrator and automatically enrolled in a portion of the class-action settlement.

The company reports it has dedicated a toll-free number for customers who believe they should be included: 877-924-8697.

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