What the Wells Fargo settlement covers and who gets paid

The Wells Fargo settlement is a court-approved agreement that compensates customers harmed by the bank's unauthorized account practices. Between 2002 and 2015, Wells Fargo employees opened deposit accounts, credit cards, and other products without customer permission, often charging fees on accounts customers did not know existed. The settlement requires Wells Fargo to pay money to affected customers.

You may receive a payment if you held a Wells Fargo account during the period when these practices occurred and were charged fees or experienced other direct harm. The settlement covers multiple categories of harm: unauthorized accounts opened in your name, unauthorized credit inquiries, identity theft services you did not request, and fees charged on accounts you did not authorize.

Not every Wells Fargo customer during that time period receives the same amount. The settlement divides customers into groups based on the type and extent of harm they experienced, and payment amounts vary by group. Some customers receive a few hundred dollars; others receive several thousand.

Key Takeaways

  • Wells Fargo settlement payments go to customers who had unauthorized accounts opened or were charged fees on accounts they did not authorize between 2002 and 2015.
  • Payment amounts depend on which category of harm you fall into, and the settlement administrator determines your category based on Wells Fargo's records and your claim.
  • You do not need to submit a claim to receive a payment if Wells Fargo's records show you were harmed; the settlement administrator identifies may be able to access customers automatically.
  • If you believe you were harmed but did not receive a notice, you can submit a claim form to the settlement administrator with documentation of the unauthorized accounts or fees.
  • The settlement fund has a important date for claims, which varies depending on when the settlement was approved for your state or account type.

How the settlement administrator identifies who gets paid

The settlement uses a claims administrator — a neutral third party — to identify customers who were harmed and calculate their payments. The administrator starts with Wells Fargo's internal records, which show which accounts were opened without authorization and which customers were charged fees on those accounts.

If Wells Fargo's records clearly show you were harmed, you are placed in a payment category automatically. You do not have to do anything to receive this payment. The administrator will send you a notice by mail explaining which category you are in and how much you will receive.

If you believe you were harmed but Wells Fargo's records do not show it — for example, if you closed an unauthorized account years ago and the bank has no record of it — you can submit a claim form. The form asks you to describe the unauthorized account or unauthorized charges and provide any documentation you have, such as bank statements, credit reports, or correspondence with the bank.

Payment categories and how amounts are determined

The settlement divides customers into payment groups based on the harm they experienced. The main categories are:

  • Unauthorized deposit accounts: Customers who had checking or savings accounts opened without their permission.
  • Unauthorized credit products: Customers who had credit cards or lines of credit opened without authorization.
  • Unauthorized credit inquiries: Customers whose credit was checked without permission, which can lower credit scores.
  • Identity theft services: Customers charged for identity theft protection they did not request.
  • Multiple harms: Customers who experienced more than one type of unauthorized activity.

Within each category, the amount you receive depends on factors such as how many unauthorized accounts were opened, how long they remained open, and how much in fees you were charged. Customers who experienced multiple types of harm typically receive larger payments than those harmed in only one way.

The settlement also includes a "residual fund" — money left over if not all may be able to access customers claim their payments. This money goes to consumer protection organizations and financial literacy programs, or it may be distributed to unclaimed payment recipients in a second round.

How to check if you are receiving a payment

If you are may be able to access for an automatic payment, Wells Fargo and the settlement administrator will send you a notice by mail. The notice will include your name, the last four digits of the account associated with your claim, the payment category you fall into, and the amount you will receive.

Read the notice carefully. It will also tell you whether you need to take any action — most automatic payments require no action from you — and when you can expect to receive your money. Payments are typically sent by check or deposited directly to a bank account you provide.

If you do not receive a notice but believe you were harmed, contact the settlement administrator directly. Their contact information is published on the settlement website and in any notices Wells Fargo sends. You can ask whether your name appears in the settlement records and request a claim form if you want to submit additional information.

Submitting a claim if you were harmed but not automatically identified

To submit a claim, you will need to complete a claim form from the settlement administrator. The form asks you to describe the unauthorized account or charges, provide the approximate dates, and list any documentation you have.

Documentation might include bank statements showing the unauthorized account, credit reports showing the unauthorized inquiry or account, letters from Wells Fargo acknowledging the unauthorized activity, or your own records of fees charged. You do not need perfect documentation — the administrator reviews claims based on what you can provide and what Wells Fargo's records show.

Submit your claim form before the important date listed in the settlement notice. important date vary by state and by the type of account involved, so check your notice or the settlement website for the exact date. Claims submitted after the important date are typically not reviewed.

What happens after you submit a claim

After you submit a claim, the settlement administrator reviews it alongside Wells Fargo's records. If the administrator finds that you were harmed, you are assigned to a payment category and notified of your payment amount. If the administrator cannot confirm the harm based on available records and documentation, your claim may be denied, and you will receive a notice explaining why.

If your claim is denied, the notice will tell you whether you have the right to object or appeal. Some settlements allow you to submit additional information or challenge the decision; others do not. Follow the instructions in the denial notice if you want to pursue an appeal.

Once your claim is approved, payment is typically sent within a few weeks to a few months, depending on how many claims the administrator is processing. You will receive a separate notice when your payment is sent.

Taxes and reporting requirements for settlement payments

Settlement payments for personal injury or wrongful conduct are often not taxable income, but the tax treatment depends on the specific harm and your circumstances. The settlement administrator or Wells Fargo may send you a tax form (such as a 1099) reporting the payment, or they may not, depending on how the settlement is structured.

Consult a tax professional if you are unsure whether your settlement payment is taxable. Keep any notices or forms you receive from the settlement administrator or Wells Fargo for your tax records.

Frequently Asked Questions

Do I have to do anything to get my settlement payment?

If Wells Fargo's records show you were harmed, no — you will receive a notice and a payment automatically. If you were harmed but Wells Fargo has no record of it, you must submit a claim form before the important date.

How long does it take to receive a settlement payment?

Automatic payments are typically sent within a few months of the settlement approval. Claims submitted after the initial identification may take longer to review and process. The settlement administrator's notice will give you a timeline for your specific situation.

What if I already closed the unauthorized account years ago?

You can still receive a payment. Submit a claim form describing the account and providing any documentation you have, such as old bank statements or credit reports. The administrator will review your claim even if the account no longer exists.

Can I receive a payment if I am not a U.S. citizen?

Citizenship is not a requirement for the Wells Fargo settlement. If you held a Wells Fargo account and were harmed by the unauthorized practices, you may be may be able to access. Contact the settlement administrator if you have questions about your specific situation.

What if I think I was harmed more than the settlement says?

The settlement payment is based on the categories and amounts set by the court agreement. You cannot negotiate a higher payment. If you believe the settlement amount does not fully compensate you, you may have had the right to opt out of the settlement and pursue your own lawsuit, but that important date has passed for most settlements.