Wells Fargo will refund $40 million to its customers. How do you know if you qualify?

This week, the Securities and Exchange Commission confirmed that one of the largest US banks, Wells Fargo will be required to pay approximately $40 million to its 11,000 customers, as well as a $35,000 civil penalty imposed by the SEC.

In this regard, Gurbir Grewal, director of SEC Compliance, stated that “for many years, Wells Fargo and its predecessors negotiated lower consulting fees for thousands of clients, but failed to meet them.”.

While Wells Fargo has been known to not accept or deny any allegations so far, this agreement, exposed by the Securities and Exchange Commission, aims to complete legal negotiations with the bank.

For her part, Wells Fargo spokeswoman Caroline Shipersky said she was “glad to have this matter resolved.” The process that caused this problem was eliminated almost ten years ago; and as stated in the agreement documents, Wells Fargo Advisors Conducted Due Diligence and Fully Reimbursed Affected Clients”, he stressed.

What was the problem with Wells Fargo?

Wells Fargo advisory advisors have agreed to lower standard fees for some of their clients, according to the filing. A situation arose when, not taking into account these changes in the system, The banking institution continued to receive advisory services with automatic debiting of 10,945 bank accounts.

So the regulator decided that Wells Fargo would have to pay back those $40 million in restitution to customers, including excessive fees, interest, and more.

How do you know if you are eligible?

According to the report, customers who are charged additional consultation costs will receive a notice from Wells Fargo that they are eligible for a refund.