On November 18, 2016, the United States District Court for the Northern District of California granted preliminary approval of a class action settlement in McLaughlin v. Wells Fargo Bank, N.A. The proposed settlement provides for i) a $880,000 fund (representing 88% of total potential damages available under the Truth in Lending Act), to be distributed to Damages Class Members, and; ii) changes to Wells Fargo’s practices, whereby it will revise its template payoff statement letter to disclose held property insurance funds, as well as explanatory language. On December 8, notice of the proposed settlement was mailed to class members. Members of the Damages Class will also receive a copy of the Form tax letter and W-9.
The Court has scheduled a Final Approval Hearing on March 9, 2017 to consider whether the settlement is fair, reasonable, and adequate, and whether requests for attorneys’ fee and costs should be approved. Any attorneys’ fees and costs will be determined by the Court, would be paid separately by Wells Fargo, and would not diminish the settlement fund in any way.
Earlier this year, the Court certified this action as a class action, appointing Wolf Popper LLP as Class Counsel, and Wolf Popper partner Patricia I. Avery as lead counsel.