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Wells Fargo Bank Fund Withholding Class Action Lawsuit
By Sarah Pierce
A federal class action lawsuit claims that Wells Fargo engages in “deceptive and fraudulent bank tactics” by delaying to send wire transfers and delaying to make deposited funds available for excessive periods of time in order to generate interest on the funds.
Plaintiff Gerald T. Reilly alleges in the Wells Fargo Bank class action lawsuit that at various times in 2009, 2010 and 2011, Wells Fargo Bank accepted cash funds from him for the purpose of completing wire transfers. “Without adequate notice or reasonable explanation, Wells Fargo failed to transfer such funds into the intended recipients’ accounts and instead kept the funds for periods of time ranging from 24 to 72 hours,” he says in the class action complaint.
“Plaintiff did not authorize Wells Fargo to transfer any funds into such accounts, was not informed of Wells Fargo’s intent to do so, and did not possess any ownership interest in such accounts,” the Wells Fargo class action lawsuit states.
“In a similarly deceptive fashion, Wells Fargo has, on numerous occasions in 2010 and 2011, accepted checks from the Plaintiff, debited Plaintiff’s account in the amount of the check, and held the funds for unreasonable periods of time without crediting the payee’s account. Plaintiff inquired about the location of the funds — having been removed from Plaintiff’s account but not yet deposited into the payee’s account — and was again told about Wells Fargo’s elusive ‘holding account.’”
The Wells Fargo Bank class action lawsuit is brought on behalf of all persons or entities in Texas who have suffered as a result of deceptive and these fraudulent bank tactics. It is seeking damages, interest and other relief for Class Members for fraud, negligent misrepresentation, conversion, breach of contract, unjust enrichment, violations of the Texas Deceptive Trade Practices Act (DTPA), and more.
A copy of the Wells Fargo Bank Fund Withholding Class Action Lawsuit can be read here.
The case is Gerald T. Reilly v. Wells Fargo Bank, National Association, Case No. 5:11-cv-743, U.S. District Court, Western District of Texas, San Antonio Division.
Updated September 9th, 2011
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23 thoughts onWells Fargo Bank Fund Withholding Class Action Lawsuit
My Fiance has an account with Wells Fargo, going on almost three years now, and all of the sudden, FULL BLOWN NIGHTMARE! He works in sales so his checks, which are only offered by his company by way of mobile deposit, are always close to, or in the mid to high thousands each week. We have now had a hold of 2 weeks or longer on his last 5 checks from his employer via mobile deposit. The first time it happened they told him that it was because of insufficient funds from the employers account, which after checking moments after being told that, we found and verified to be untrue. They still held his money even after a verification of funds because they said once its held they cannot lift the hold. The second check that was held we were given NO straight or clearly specified reason for the hold of almost 2 weeks (about 12 days). The third check was one for an amount right under 6,000 dollars. This check was completely unable to be deposited via mobile deposit because the amount exceeded 5,000 dollars. This caused my fiance to then get the check rewritten and split into two separate checks in order to deposit the full amount. He received from his employer one check for 4,000 and another for 1,995. He deposited the 4,000 dollar one first so that we could tend to all of our monthly bills and payments which all had due dates within the upcoming week of the 4,000 dollar check being given by the employer. The bank gave us the 400.00 amount that is available for immediate use and we started to pay our bills. We wake up the next morning to an overdrawn account of 391 dollars and a hold of two and a half weeks until the funds to the 4,000 dollar check are available. We furiously called the bank asking question after question of why this had happened and if there was any type of remedy to this serious problem with our funds. We spoke with three different people and it wasn’t until speaking with the fourth representative and going on 3 hours on the phone with different reps and bankers that we were informed of a specific reason. The funds were held because of a suspected fraud because my fiance had taken a picture off my phone of the picture of his check that he gets from his employer each week and in the photo you could see my phone with the picture of the check on it. This we didn’t like and felt it a bit petty but we did understand the possible risk they had seen and flagged. So we proceeded on accepting that the check would be held until March 1st ( 2 and 1/2 weeks from deposit date). We told the lady who informed us of the reasoning for the prior hold that we wanted to be sure BEFORE depositing this second check of 1,995, that if the check is correctly snapped in the photo ( without any background or other objects visible in the photo) it will be okay and go through. We wanted to make sure also that it was not going to be held regardless, or due to the current hold on the other check. She ASSURED us that it would be fine and go through as normal with the funds of 400 immediately and the remaining funds available the following day. We went over this asking our concerns about another hold multiple times and in many different ways. We were continually and consistently ASSURED that the deposit would be fine. We deposited the check and ALL THE FUNDS INCLUDING IMMEDIATE 400.00 was IMMEDIATELY held with a message saying that the funds were being held until the 22nd of February. Then on the 22nd we get another message informing us that the funds are being held another 24 hours until the 23rd of February. The 23rd came and we honestly didn’t think the funds would be there but they were in full, 1,995. We had a car in the shop we had to pay for work on and pick up as well as all our other expenses that had been put on further hold. The evening of the 23rd rolled around and while at the gas station trying to get gas to make it home from work, the card to the account gets declined for insufficient funds!!!! Wells Fargo had taken the entirety of the cleared and deposited check back, overdrawing the account 1,500 dollars for (“further review of suspicious activity with the account it was drafted from”.) We spoke with four different people again trying to get answers and we got no specification on what the suspicious activity was or why. We were however told by everyone we spoke with that it had nothing to do with the previous deposits we had made that were being or had been held and that this hold we due solely because of the employers bank and or bank account. We get it weird stuff happens but we asked for an explanation as to why every other employee working for the company, and getting checks drafted from this same employer/account as my fiance, had not had any issue with their deposits or funds? All of the employees use Wells Fargo to deposit their checks and they all deposit the check by way of mobile deposit. So why on earth were we the only ones being affected, not once, not twice, not three times, but four and five times?! It is absolutely unreal and HAS TO BE unlawful!!!! Wells Fargo is currently withholding a total of 9,000 dollars until March 1st and 2nd. We are adamantly seeking help and clarity in our ability to file a civil or class action suit against this bank IMMEDIATELY!!!!!!!!
This happened to me. I deposited $15,000 from an out of state cashier’s check and was told it would take 20 days to clear. I asked why there’s such a long hold on a check that was already certified and was told that’s their policy. I live in Florida and would like to see a class action suit against Wells Fargo for my state.
I am experiencing this now. I transferred money into my Wells Fargo checking account so that I could make a downpayment on a home. Wells Fargo has fully blocked access to my account and all of my funds without explanation dispite having verified my thumbprint, voice print, social security number, phone, email, and other details repeatedly. They are aware that this is causing distress and is jeopardizing my ability to buy a home. It has also impacted my ability to work. Despite repeated complaints, they refuse to be of assistance.
I deposited a 8,000 dollar state issued check and they are holding it for 13 days I’ve asked them to release funds they will not!
Here were are 10 years later back than they got bailed out in 2011 we were mad as hell, its 2022 and I did not learn here I am fighting with kid bankers on the telephone that do not know the law. Big banks got bailed out we got sold out, I deposited my State Check over 10k into my account and being that is supposed to be illegal to hold a GOVERNMENT check of State or Federal level I thought, hey I will just call them and let them know that I need those funds release, well I called every day since depositing this check, every single banker I talk to refused to listen to me and stood by there decision to hold the check , I mentioned to them it takes no more than a few days to verify funds on a government check they continue to insist they are in the right to do so and further more after my calls decided to not only hold the check but add an extended hold from 10-14 days, I thought okay, this is the twilight zone its going on two weeks I’m making a in person appointment, surely they will know the law, the gurl they. have working was insulting me at the least, she said I’m only trying to help you but Im telling you right now you cant get your money until the 14th, as she gets on the phone she rolls her eyes as speaking and tells her boss that I don’t know much and that I’m APPARENTLY she used that way to many times, not understanding, “the law” and that I did not ask enough questions when on phone, whom said they have no authority and the reasons stated for the hold were right, which I once again stated this is a government check and as she started mocking my intellect she started a fight with me verbally and I said you have done nothing to help me since I walked in this office she was dismissive of everything I stated the entire time if I said something she rebuted it. It was like two 5-year-olds, I grabbed my things off her desk told em where they could put their fees and attempted to walk away she stated if I don’t like it she can shut down my 4-year-old business accounts right now. As her supervisor was on the phone. I told em I have responsibilities to my community as a business owner or I would, she was trying to trick me into more fees, and another employee came in saying I needed to leave, I was doing exactly that until she antagonized the argument. They recently had offered me a mortgage rate of 3% and locked in at that, in the middle of the night they changed it to 5% when I called em on it they canceled my application after making me pay 800.00 for an appraisal knowing that they were not moving forward and that my loan officer was on vacation. All this while my own mother had just had an account opened in her name without permission. This bank hit strike 3 for me. Im on board sounds like I should go solo on this one. I got so much evidence on them. The loss of sleep and duress make me never want to bank again. As if I have that as an option.
After I deposited my check at wellsfargo for $4000, I got a message from the bank that my account is on hold, any transaction is blocked, and I can not access to get my money, suddenly blocked and closed my account. This is ridiculous, all my online transactions, and automatic payments are affected. I’ve been calling wellsfargo to justify this situation but none of them can explain why. It’s been a week now, I only have $80 cash with me. This is insane. Imagine how many people are undergoing this situation. We need a lawsuit for this. I would like to sign up. Please inform me.
Hello,
The same happened to me for $100! They closed the acct and won’t refund me deposit. The excuses are plentiful. A class lawsuit needs to be filed ASAP. I’m looking into an attorney to bring charges. Wells Fargo needs to be put out of business yesterday!!!!
Let me know if you found a lawyer too. They did the same to me but for much more than $100!!
Count me in they are still currently holding a government check that they were paid for on the 12th of this month. Been on hold now for 30 mins
Count me in have very clear proof they are withholding funds they received.
I have had a business and personal checking account with Wells Fargo for over 30 years. The last decade or so has been rife with these kinds of “holds” on checks and wire transfers. I have often thought that their behavior must be illegal, if not unethical. I did not know that I could be part of a suit to address these grievances. I am based in California. Please include me if I am eligible!
This lawsuit is over 9 years old but I am in Los Angeles and if anyone can point me in the direction of an attorney I have proof that they are holding funds that have been released to them.
I opened an investment account with Wells Fargo called intuitive investor more than 3 months ago . In addition to not benefiting from this account but they put a hold on my funds totalling 15000 $ and sent me q request to verify my ID with the bank and I went straight to the bank with my ID and they faxed it to Wells Fargo advisors before Christmas 2021. It is now martin Luther King weekend and I still can’t access a single penny of my money and every day I call 3 or 4 times and I went to the branch and still nothing makes sense of why the hold on my accounts and now I have no money for gas or anything and I am deeply hurt and I need help . Never I thought that this can happen in America but it is happening. Where is the sensible and the honerble men of law and business. And justice for all .