The Court held the Final Fairness Hearing on January 8, 2021 and issued the Final Judgment and Order.
What is this lawsuit about?
The lawsuit claims that Wells Fargo unlawfully discriminated against DACA recipients by making them ineligible for direct auto loans. It also claims that Wells Fargo unlawfully pulled DACA recipients’ credit reports without a permissible purpose, and unlawfully misstated the reason their applications for credit were denied. This settlement obtained different relief for people who lived in California at the time their application was denied (the “California Class”) and everyone else (the “Nationwide Class”), due to the different protections available under California and federal laws.
Wells Fargo denies Plaintiff’s claims and maintains that its policies complied with the law.
In connection with this settlement, Wells Fargo has agreed to change its lending policies to make DACA recipients eligible for direct auto loans and to make cash payments to members of the California Class and the Nationwide Class.
Who is included?
You are a member of the Nationwide Class if you resided anywhere in the United States other than California as noted in Wells Fargo’s records and had valid, unexpired DACA status at the time you applied to and were denied at least one direct auto loan between July 16, 2017 and August 21, 2020.
You are a member of the California Class if you resided in California as noted in Wells Fargo’s records and had valid, unexpired DACA status at the time you applied to Wells Fargo and were denied at least one direct auto loan between July 16, 2017 and August 21, 2020.
If you do not have DACA now and did not have DACA in the past, you are not a Class Member, and your rights are not affected by this settlement.
What does the Settlement provide?
The Settlement provides cash payments and changes to Wells Fargo’s lending policies. First, Wells Fargo has agreed to change its policies so that DACA recipients are eligible for direct auto loans on the same terms and conditions as those loans are offered to U.S. citizens as long as there is an appropriate product. In other words, Wells Fargo will not consider whether an applicant has DACA in deciding whether to offer credit.
Second, Wells Fargo has agreed to make cash payments to Class Members who timely submit a Verified Claim Form. The number of cash payments will be based on each Class Member’s number of applications and denials of direct auto loans from July 16, 2017 through August 21, 2020 that are contained in Wells Fargo’s direct auto loan application database.