A settlement has been reached by Kentucky Attorney General Andy Beshear against Wells Fargo for $2.8 million over alleged unfair and deceptive trade practices.
According to a news release, Kentucky’s $2.8 million—part of a $575 million multistate settlement with all 50 states—will be placed into the state’s general fund for lawmakers to appropriate during the 2020 legislative budget session.
As part of the settlement, Wells Fargo will create a consumer redress review program through which consumers who have not been made whole through current restitution programs can seek review of their inquiry or complaint by a bank escalation team for possible relief.
The settlement resolves claims that Wells Fargo violated Kentucky consumer protection laws. Beshear and the states allege the bank imposed aggressive and unrealistic sales goals on bank employees. Bank employees allegedly opened millions of unauthorized accounts and enrolled customers into online banking services without their knowledge or consent, improperly referred customers for enrollment in third-party renters and life insurance policies and other practices.
Beshear says, “The nearly $2.8 million we secured is a sizable amount for our General Fund, and could be used for important causes such as new textbooks for our school children.”