Wells Fargo finds itself embroiled in a new lawsuit where a customer, Ethan Parker, claims the bank seized his funds and closed his account following a legitimate $207,765 deposit. Parker asserts that he opened the account specifically to deposit a sizable check he received after the passing of his adoptive mother. However, just 15 days after the deposit, Wells Fargo allegedly shuttered the account, confiscated the funds, and accused him of check forgery.
According to the lawsuit, Parker took steps to verify the legitimacy of the check by obtaining a letter from the issuing firm confirming its authenticity. Despite this documentation, Wells Fargo reportedly continued to deny Parker access to his funds without providing an “adequate explanation.”
The legal action seeks a court order to compel Wells Fargo to release the seized funds, with the lawsuit asserting that Parker has suffered damages that will be determined during the trial.
In response to the lawsuit, a Wells Fargo spokesperson stated that the bank strongly disagrees with the allegations and intends to defend its actions, maintaining that it took appropriate measures.
Parker’s situation has left him unable to make house payments, and his legal team is reportedly searching for other individuals who may have experienced similar account closures by Wells Fargo over fraud allegations.
This legal challenge comes on the heels of Wells Fargo agreeing to pay a $35 million civil penalty to the U.S. Securities and Exchange Commission (SEC) in the previous month. The settlement was related to allegations that the bank charged excessive fees to customers for investment advice. Wells Fargo settled the case without admitting or denying the accusations.
The lawsuit against Wells Fargo highlights the ongoing scrutiny and legal challenges faced by financial institutions in their interactions with customers and underscores the importance of transparent and fair banking practices.