Wells Fargo Accused of Draining Customers’ Accounts Without Notice or Authorization in ‘Blatant Disregard’ of Consumer Loan Protections: Class-Action Lawsuit

A Wells Fargo buyer in California simply filed a proposed class-action lawsuit accusing the financial institution of draining clients’ accounts in blatant violation of shopper safety legal guidelines.

The plaintiff, piano instructor Helen Palma, alleges Wells Fargo unlawfully seized funds from her checking account after she fell behind on bank card funds, reports ClassAction.org.

In keeping with the submitting, the financial institution gained a judgement in opposition to Palma for excellent bank card debt.

However the lawsuit claims Wells Fargo then abruptly drained Palma’s checking and financial savings accounts with out acquiring a required financial institution levy – allegedly violating state legal guidelines that require banks to present clients correct discover, supply an opportunity to file a declare of exemption in addition to go away a minimal steadiness of $1,900 in buyer’s accounts.

“In blatant disregard of those guidelines, Wells Fargo skipped the authorized course of for a financial institution levy, which might have prevented it from taking any cash out of [the plaintiff’s] accounts, and as an alternative unlawfully helped itself to her funds and go away [sic] her with solely $102.74 to her title.”

Palma’s class motion seeks to guard all residents of California who could have had their funds illegally withdrawn by Wells Fargo inside the final 4 years.

So far, Wells Fargo has not returned the funds to Palma and has by no means proved that it had authorization to grab them, in accordance with the swimsuit.

Particularly, the lawsuit accuses Wells Fargo of violating the Fact in Lending Act, Rosenthal Honest Debt Collections Practices Act and California Unfair Competitors Regulation.

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