Wells Fargo Class Action Lawsuit Summary:
- Who: A federal judge in North Carolina has agreed to Wells Fargo Bank’s request to enforce arbitration in a case involving claims of overcharging military members on interest rates and fees.
- Why: The judge determined that the plaintiffs’ credit card accounts were established before the implementation of the Military Lending Act, which now includes stricter arbitration guidelines.
- Where: The legal action against Wells Fargo has been filed in a federal court in North Carolina.
A federal judge in North Carolina has approved a motion compelling arbitration, while also suggesting that a proposed class action lawsuit be dismissed. This case claims that Wells Fargo Bank charged service members excessive interest rates and bank fees.
U.S. Magistrate Judge Robert B. Jones Jr. highlighted that the plaintiff’s credit card account was opened on or before October 3, 2017. The Military Lending Act (MLA) and its arbitration rules have since been broadened to include credit card accounts.
In his ruling, the judge stated, “Since the plaintiff’s Wells Fargo credit card account was established prior to the credit card being subject to the MLA, and given that the regulations do not retroactively apply, the MLA and its arbitration rules are not applicable to this account.”
Carmin Nowlin, Tamika Haley, and Jesús Rodriguez initiated the class action in March 2024, alleging that Wells Fargo neglected to waive promised fees as part of its military benefits program, additionally charging higher interest rates on credit cards than permitted under the Servicemembers Civil Relief Act (SCRA).
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Judge Jones also pointed out that Mr. Rodriguez’s account was opened prior to it being subject to legal requirements, dismissing the MLA’s claim that the arbitration clause could not be enforced against him because he was on active duty when the complaint was filed.
“Therefore, the MLA’s provision against arbitration applies irrespective of the plaintiff’s active duty status at the time of the lawsuit,” the judge wrote.
A Wells Fargo spokesperson, Shea Leordeanu, emphasized the bank’s commitment to supporting military personnel and ensuring they receive the benefits under the SCRA. “We have recognized specific cases where customers did not get the interest or fee reductions during their eligibility under the SCRA. We are in the process of refunding affected customers,” Leordeanu stated.
What are your thoughts on the decision regarding the Wells Fargo class action lawsuit? Feel free to share in the comments.
The plaintiffs are represented by Paul J. Puryear Jr. and Matthew D. Ballew from Ballew Puryear PLLC, along with Knoll D. Lowney and Claire Tonry from Smith & Lowney PLLC.
This case is officially known as Carmin Nowlin et al. v. Wells Fargo Bank NA, Case No. 5:24-cv-00179 in the United States District Court for the Eastern District of North Carolina.
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