A California resident has filed a class-action lawsuit against Wells Fargo, alleging the bank illegally withdrew funds from her accounts without proper notice or authorization.
Plaintiff’s Claims
Piano teacher Helen Palma claims Wells Fargo seized funds from her checking and savings accounts after she fell behind on credit card payments. According to the lawsuit, the bank obtained a judgment against Palma but failed to follow proper procedures for a bank levy.
Alleged Violations
The lawsuit alleges Wells Fargo violated several laws, including:
- Truth in Lending Act
- Rosenthal Fair Debt Collections Practices Act
- California Unfair Competition Law
Palma claims the bank failed to provide proper notice, offer her a chance to file a claim of exemption, and leave a minimum balance of $1,900 in her accounts.
Class Action Status
The lawsuit seeks to represent all California residents who may have had their funds illegally withdrawn by Wells Fargo within the past four years.
Wells Fargo’s Response
As of the lawsuit’s filing, Wells Fargo had not returned the funds to Palma or provided proof of authorization to seize them.
