Wells Fargo bank NA has acted to dismiss a proposed class related lawsuit which alleges it to have wrongfully imposed a return to float mortgage application fee on applicants when issuing mortgages and then not refunding them within more than ten years. The bank asserts that the case has no merit and the plaintiffs never declared any viable causes of action, asking to be eased out of the case in California federal court that was filed in June 2025.
Criminal Charges against Wells Fargo
– Plaintiff Lance Baird asserts that Wells Fargo imposed return to float charges on borrowers on funds that it held between closing and disbursement that qualify as escrows, but never refunded the charges even after issuing apology letters in December 2022 along with partial cashier checks.
– The suit claims that the letters issued by the bank gave insufficient account or explanation and borrowers could not be able to estimate the full damages that the bank engaged in over the ten-year decade.
– Baird claims the breach of the Unfair Competition Law in California, the civil theft, conversion, unjust enrichment, and requests the accounting, stating that the bank was hiding the problem until it was disclosed by the regulators.
Motion to Dismiss Arguments at Wells Fargo
– Wells Fargo argues that the returned to float charges were industry customary and it was disclosed in loan documents, so it did not commit any fraudulent claims.
– The bank claims that the plaintiffs cannot demonstrate injury or reliance because they got partial refunds and signed contracts to pay the fees.
– Wells Fargo disputes standing on the argument that there are no concrete damages given to borrowers because they ended up obtaining their escrow funds less approved interest.
Background of the Case and Chronology
– Submitted June 6, 2025 in California Superior Court, abated to U.S. District Court Northern District of California (Case No. 3:25-cv-05959).
– December 2022 when Wells Fargo began sending refund letters following CFPB examination of mortgage practices, which was part of wider penalties of $3.7B, of which 2b in consumer redress over auto/mortgage practices.
– Motion to dismiss filed October 2025; plaintiffs through Kabatek LLP, pursuing the class certification of all California Wells Fargo mortgage borrowers who received 2022 letters.
Global Wells Fargo Mortgage Lawsuit Background
– Stems off 2022 CFPB consent order that fines Wells Fargo $3.7B due to mortgage mistakes such as unsuitable modifications, unjust foreclosures, and reporting deceased borrowers- $200M to be paid to mortgage victims.
– Truth in Lending Act claims in separate loanDepot lawsuit; Wells Fargo continues to come under CFPB scrutiny following the fake accounts fraud.
– Settlement history also covers a settlement of 19.5M in call recording claims; mortgage fee claims reflect trend of origination/pricing claims.
Summary Table: Wells Fargo Mortgage Fee Lawsuit Critical Facts
| Aspect | Details |
|---|---|
| Case Name | Baird v. Wells Fargo & Co. (3:25-cv-05959) |
| Court | N.D. Cal. (San Francisco) |
| Allegation | Unrefunded “return to float” mortgage fees |
| Proposed Class | CA borrowers receiving 2022 Wells Fargo letters |
| Relief Sought | Damages, accounting, class certification |
| Wells Fargo Defense | Fees authorized, refunds provided, no injury |
| Filing Date | June 6, 2025 (state), July 15 removal |
FAQs
Q1: What are return to float fees?
Interested on escrow funds between closing and disbursement 1-2 days interest- standard but claimed not refunded.
Q2: Have Wells Fargo acknowledged wrong doing?
No; made some refunds in 2022 following CFPB examination, considers letters sufficient.
Q3: Who qualifies for the class?
Mortgage borrowers of California Wells Fargo who receive 2022 apology letters/checks.
