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.
The banking giant was hit with a lawsuit after a North Carolina-based client named Ethan Parker alleged he was denied access to his money with “little to no explanation.”
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.
Parker’s attorney Jim White says his team is now seeking additional funds 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 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.
And last month, the bank to pay a $35 million civil penalty to the U.S. Securities and Exchange Commission for allegedly charging excessive fees to customers for investment advice.
In both cases, it settled the allegations without admitting or denying the accusations.
Wells Fargo it made $13.18 billion in net income in 2022, down from $21.54 billion in 2021.
