A proposed class-action lawsuit has been filed against Wells Fargo in California, with a customer accusing the bank of unlawfully draining their accounts in violation of consumer protection laws. The plaintiff, a piano teacher named Helen Palma, claims that Wells Fargo seized funds from her bank account after she fell behind on credit card payments. The lawsuit alleges that the bank won a judgement against Palma for outstanding credit card debt, but then proceeded to drain her checking and savings accounts without obtaining a required bank levy. This action allegedly violates state laws that mandate banks to provide customers with proper notice, an opportunity to file a claim of exemption, and to leave a minimum balance of $1,900 in their accounts. Palma’s class action is seeking to protect all residents of California who may have had their funds illegally withdrawn by Wells Fargo within the last four years. As of now, the bank has not returned the funds to Palma and has failed to provide proof of authorization to seize them. The lawsuit specifically accuses Wells Fargo of violating the Truth in Lending Act, Rosenthal Fair Debt Collections Practices Act, and California Unfair Competition Law.
