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Thursday, June 13, 2024 | Back issues
Courthouse News Service Courthouse News Service

Wells Fargo Found a New Way to Abuse|Its Customers, Mother Says in Class Action

SAN FRANCISCO (CN) - A federal class action accuses Wells Fargo Bank of fraud, conversion and abuse of process. The named plaintiff says the bank froze her bank account after she filed for Chapter 7 bankruptcy, denying her and her child the money they need to eat, clothe themselves and pay rent. And it did this though she "had no mortgage loans, credit cards or other loan accounts with Wells Fargo and owed no debts whatsoever to Wells Fargo."

Lead plaintiff Brooke Yarborough claims Wells Fargo has a national policy of freezing and retaining the money in its customers' accounts after they file for Chapter 7 bankruptcy protection. She says the bank knows that its policy causes "severe financial hardship" to its customers, and that the policy constitutes fraud, deceit, fraudulent concealment, breach of contract and abuse of process.

She claims Wells Fargo seized her personal account 4 days after she filed for bankruptcy protection.

She wants access to her money, an injunction and compensatory and punitive damages. She is represented by David Arbogast of Woodland Hills.

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