By Matthew Russell Lee, Patreon
SDNY COURTHOUSE, Dec 20 – Billy Dixon opened a Wells Fargo account with $750 in 2013. Then with Wells Fargo caught up in account opening fraud, it was closed the money not paid back for three weeks.
Dixon sued.
On February 11, 2021 U.S. District Court for the Southern District of New York Judge John P. Cronan held a proceeding. Inner City Press covered it.
Wells Fargo predictably wanted to compel arbitration, or to dismiss the case.
It had no fewer than three lawyers in the docket.
And Wells, with its mandatory arbitration claim, got the case dismissed. But not its problems.
On December 20, 2022, the CFPB announced it is "ordering Wells Fargo Bank to pay more than $2 billion in redress to consumers and a $1.7 billion civil penalty for legal violations across several of its largest product lines. The bank’s illegal conduct led to billions of dollars in financial harm to its customers and, for thousands of customers, the loss of their vehicles and homes."
Will the CFPB act on abuses in mandatory arbitration?
The case is, or was, Dixon v. Wells Fargo Bank, NA, 21-cv-10 (Cronan)
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