Wells Fargo is now fighting a lawsuit for freezing a customer account after the bank failed to hand over $204,000.
The banking giant was hit with another lawsuit after a North Carolina-based customer named Ethan Parker alleged he was denied access to his money with “little to no explanation.”
“Wells Fargo says it did nothing wrong when freezing $204,000 in a customer’s account – even though it’s partially relenting to lawyers who claim otherwise,” reports TDH.
Despite objecting to the claims, Wells Fargo is backing down in part, and will soon hand a $204,000 check over to Parker, reports Triangle Business Journal.
However, according to Parker’s attorney, his team is now seeking additional compensation for damages and attorneys fees.
“You can’t just disrupt someone’s financial life for a year and not face consequences for it.
I think it’s fair to say we feel vindicated because Wells Fargo was given the opportunity in court to contest anything we said.
They had the opportunity to present evidence… they chose not to do that, so we feel vindicated.”
Parker says he’s been unable to pay his mortgage after losing access to his money, which was given to him after the death of his adoptive mother.
In December, Wells Fargo agreed to pay a total of $2 billion to current and former clients as well as a $1.7 billion civil penalty to the Consumer Financial Protection Bureau (CFPB) for unlawfully freezing consumer accounts and illegally charging fees and interest on auto and mortgage loans, reports TDH.
Wells Fargo settled the allegations without admitting or denying the accusations.
In August, it was reported that the US Treasury Direct was also freezing several customer accounts from weeks to even several months.
Other Banking News Today
Customers are now reporting being unable to access money from a popular US bank.
Green Dot Bank has been facing fraud allegations from various customers who have been locked out of their account from weeks to months.
Many customers are having difficulty receiving a direct response from the bank’s customer service department, with many claiming to have been given the runaround.
“It been a month and I still haven’t been able to get my money from Walmart green dot. I have ask for a replacement card 4 time haven’t got a card yet my rent is do for last month and this month. I think there trying keep my money,” says Marzell Land.
Green Dot bank has been freezing multiple customer accounts resulting in missed bills or the usage of high interest credit cards to get by.
“Unable to access my funds from Green Dot and they have no answers and send me to a specialist that has me on hold for hours and then they hang up on me,” said Jordan, a Green Dot Bank customer on Friday.
“I had my check go to this account and now my $2,500 dollars is gone.
They have told me from Tuesday they would refund me. Do Not Use this fake bank!!!!!!
WE need to report them to BBB Crooks in real life @GO2bank. Was on the phone for two hours, NOTHING,” reports Lori Chong.
Several retirees in the U.S. have been affected.
The bank, which has 33 million customers, initially said account balances and transactions were impacted by an issue with a payment processing partner.
Now, the bank says its systems are fully up and running – but customers say the problems persist.
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