If you contracted to receive payment processing services from Wells Fargo Merchant Services, you may be entitled to benefits from a Wells Fargo class action settlement.
Wells Fargo Merchant Services, LLC (“Wells Fargo”) has reportedly agreed to a class action settlement of a lawsuit filed against it in the United States District Court for the Eastern District of New York, styled Patti’s Pitas, LLC, et al. v. Wells Fargo Merchant Services, LLC, Case No. 1:17-CV-04583, alleging, among other things, that Plaintiffs contracted with Wells Fargo Merchant Services to process payment card transactions and that Wells Fargo Merchant Services added certain excessive charges to their monthly invoices. Wells Fargo Merchant Services reportedly denies that it acted improperly or that it has any legal liability.
Who Is Included In The Wells Fargo Merchant Services Class Action Settlement?
The Wells Fargo Merchant Services class action settlement reportedly includes, unless otherwise excluded, the following settlement class:
All merchants in the United States that contracted to receive payment processing services from Defendant and, from August 4, 2011 through the date of Preliminary Approval: (a) processed sales through a fixed pricing plan, (b) paid a statement billing fee, non-validation PCI compliance fee, and/or monthly minimum processing fee, or (c) processed sales through a pricing plan other than standard pricing (also known as “volume tier” or “simplified” pricing) and as of Preliminary Approval are not account-managed (which includes the premier services team).
What Settlement Benefits Does The Wells Fargo Merchant Services Class Action Lawsuit Settlement Provide?
The Wells Fargo Merchant Services class action lawsuit settlement reportedly provides that Wells Fargo Merchant Services will pay up to $40,000,000 to pay cash benefits to settlement class members; the cost of notifying the class and administering the settlement; and the attorneys fees and expenses of the lawyers who represent the class and service awards to the class representatives.
Under the Wells Fargo settlement, current customers (i.e., customers as og February 8, 2021) will automatically receive a payment via a check mailed to their address on file with Wells Fargo Merchant Services. Former customers are eligible for a payment via check but must file a valid and timely claim form online or via mail by July 23, 2021.
The amount of the cash payments to settlement class members depends on, among other things, whether they are in Group 1, 2 or 3. Group 1 class members are Settlement Class Members that processed sales through a fixed pricing plan at one time or another during the Class Period. Group 2 class members are Settlement Class Members that paid a statement billing fee, non-validation PCI compliance fee, and/or monthly minimum processing fee (together,“At-Issue Fees”) during the Class Period. Group 3 class members are Settlement Class Members that processed sales through a pricing plan other than the Standard Plan (also known as “volume tier” pricing) at one time or another during the Class Period, and that as of Preliminary Approval are not account-managed (which includes the premier services team).
In addition, under the settlement, Wells Fargo Merchant Services will continue allowing any current customer that is enrolled in the “fixed (non-qual fees)” pricing plan to convert, penalty free, to the “standard” pricing plan for at least eighteen (18) months after the effective date of the settlement, so long as Wells Fargo generally continues to offer the standard plan (which may reduce a merchant on the fixed plan’s processing fees and make managing a merchant services account easier). Wells Fargo Merchant Services has also agreed to amend its Program Guide, or equivalent document, as applicable to all current customers that are not account-managed or on the Standard Plan, to reflect the following modification: “Any applicable early termination fee will be waived in the event of termination of the agreement by a customer within forty five (45) days of an increase in (or new) Non-Pass-Through fees.”
Where Can You Obtain More Information About The Wells Fargo Merchant Services Class Action Settlement?
For more information about the Wells Fargo Merchant Services class action settlement, write to Wells Fargo Merchant Services Settlement c/o Rust Consulting, Inc. – 7182, PO Box 1367, Minneapolis, MN 55440-1367, call 1-866-759-6521, email at info@merchantservicessettlement.com or visit the Wells Fargo class action settlement website at https://merchantservicessettlement.com/
Am I part of this settlement?