California lawmakers are proposing to create a class-action lawsuit against Wells for its handling of mortgage and credit card fraud, even as it faces multiple lawsuits from victims and other businesses.
In a proposed bill that would go before the state’s Assembly and Senate, Assemblyman David Chiu, a Democrat from San Francisco, said the new class would bring a $1.4 billion payout to consumers who filed claims from 2008 to 2018, when Wells Fargo began offering credit and debit cards to people without a checking account.
The state has received about 2,700 claims, and the new suit could add another 1,200, Chiu said.
Wells Fargo has paid about $4 billion to victims, but the total figure is expected to be much higher.
The company has already settled more than 300 claims involving the card issue, including the $1 million settlement from the federal government, and settled another $1bn last year, according to the California Attorney General’s Office.