Wells Fargo has struck a settlement to reimburse customers who were harmed when bank employees created unwanted accounts in their names. A federal judge has granted preliminary approval for the settlement in the class-action case.
Wells Fargo says compensation will depend on the financial harm customers suffered. Someone who paid an improper $35 fee likely will receive less money than someone whose credit score was damaged and had to accept a home loan with a higher interest rate.
That process of determining what to pay which customers will be overseen by an independent expert hired by the class-action lawyers. Wells Fargo, which is an NPR financial supporter, says it may end up paying more to customers if the $142 million isn't enough.
Wells Fargo CEO Tim Sloan said in a statement: "We are pleased that the court found the settlement to be fair, reasonable and adequate. This preliminary approval is a major milestone in our efforts to make things right for our customers." He added that the settlement is "fundamental to restoring trust."