Wells Fargo Class Action Says Bank Charges Unfair ‘Junk Fees’ for Bad Checks

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A proposed class action lawsuit claims Wells Fargo Bank has unfairly penalized customers by assessing $12 “junk fees” when they unknowingly deposit faulty checks.

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The 30-page lawsuit was filed by four Wells Fargo accountholders who allege that the bank’s so-called “deposited item return unpaid” fee is “unfair [and] oppressive” because it penalizes customers, who have “no hand in issuing” a bad check, for circumstances outside of their control.

“[The plaintiffs] were shocked when they were charged these Fees because they did nothing wrong, yet were penalized by Wells Fargo,” the suit says. “There was nothing [the plaintiffs] could do to avoid—or even anticipate—a Deposited Item Return Unpaid Fee assessed by Wells Fargo at the time the deposit was returned.”

The case contends the fee is illegal because the bank fails to adequately disclose the amount a customer will be charged. Although the fee is listed in accountholders’ contracts, the customer fee schedule plainly indicates a $0 charge for “deposited items returned unpaid,” the complaint relays.

Per the filing, the Consumer Financial Protection Bureau (CFPB) has recognized the illegality of Wells Fargo’s practice of charging a fee when a customer deposits a bad check. A compliance bulletin issued by the agency in October 2022 condemned such policies as unfair and harmful to consumers because they “lack information about and control over whether a check will clear,” the lawsuit shares.

According to the suit, Wells Fargo is no stranger to charging “junk fees.” In fact, in December 2022, the CFPB ordered the bank to end its practice of assessing “surprise overdraft fees” on accounts with sufficient funds, the case adds.

The lawsuit looks to represent anyone in the United States who, during the applicable statute of limitations period, had or has an account with Wells Fargo and was charged a “deposited item return fee” by the bank.

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