EDWARDSVILLE, Ill. (CN) – Wells Fargo will pay $5.5 million to settle claims over late fees it inherited from Wachovia.
Madison County Circuit Judge Andy Matoesian granted preliminary approval to the settlement and set a fairness hearing for Feb. 17.
The settlement provides $4 million for 46,000 homeowners who paid late fees to Wachovia subsidiary HomEq Servicing between 1999 and 2006. If all claims are submitted, the average payout is expected be $86.96 apiece.
The Korein Tillery law firm, which represented the plaintiffs, will receive $1.5 million.