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

Wells Fargo Accused of Illegally Emptying Customers’ Accounts in ‘Clear Disregard’ for Consumer Loan Protections: Class-Action Lawsuit

A customer of Wells Fargo in California has recently launched a class-action lawsuit accusing the bank of unlawfully draining customers’ accounts, thereby violating consumer protection laws. The plaintiff, Helen Palma, a piano teacher, alleges that Wells Fargo seized funds from her bank account without proper notice or authorization after she fell behind on credit card payments. According to the lawsuit, the bank obtained a judgement against Palma for her outstanding credit card debt. However, instead of following the legal process for a bank levy, which would have prevented any money from being taken from Palma’s accounts, Wells Fargo allegedly abruptly emptied her checking and savings accounts. This action is in violation of state laws that require banks to provide customers with proper notice, an opportunity to file a claim of exemption, and leave a minimum balance of $1,900 in their accounts. The lawsuit states that Wells Fargo disregarded these rules and unlawfully took Palma’s funds, leaving her with only $102.74. Palma’s class-action lawsuit aims to protect all California residents who may have had their funds illegally withdrawn by Wells Fargo within the past four years. The lawsuit alleges that Wells Fargo has not returned the funds to Palma and has failed to prove that it had the authority to seize them. Specifically, the lawsuit accuses the bank of violating the Truth in Lending Act, Rosenthal Fair Debt Collections Practices Act, and California Unfair Competition Law.