Wells Fargo Settles Into Class Action Lawsuit Over Interstate National Dealer Services
What is an ITCS lawsuit? Simple enough, if you’re not familiar with the acronym, “ITCS” is short for” Interstate Commerce Service”. According to Wikipedia: “An ITCS is a term used to refer to any interstate service provider that enables consumers to file complaints of violation of any part of the federal commerce law, or that provides training on how to file such complaints.”
Complaints from consumers, and their lawyers, about problems with Wells Fargo customer service, or other long-standing problems with Wells Fargo dealer services, have been widely reported over the last several years.
The complaints include such things as pre-approved credit extended warranties, inaccurate application requirements, lack of training and inadequate support after purchase, poor customer service and response to claims. These long standing complaints are what inspired a class action lawsuit by the name of “National Commerce Commissante”.
Class action lawsuits are often very complex affairs.
As a class, plaintiffs must prove three things: (1) that they have been injured or suffering damage due to the defendant’s conduct, (2) that such injury or damage arose as a result of the defendants’ violation of federal or state law, (3) that a settlement would benefit all members of the class. Plaintiffs in this class action lawsuit seek damages based on the breach of the defendants’ dealership service contracts, warranties and extended warranties, as well as other claims. Wells Fargo, one of the largest mortgage financing institutions in the United States, has been under fire recently because of some bad practices. A Wells Fargo dealer in Arizona, for example, was accused of falsifying information about bad debts and filing inflated numbers on customer accounts. Wells Fargo has settled suits for personal injuries, wrongful death claims, and more.
It is not uncommon to find class action lawsuits being litigated on behalf of groups of people who feel that they have been unfairly targeted by lenders or other financial institutions.
Insurance companies are being targeted by many class action lawsuits regarding the “tort” of denying disability claims. Banks are facing increasing class action lawsuit over foreclosure activities and predatory lending practices. In addition, many states are seeing increasing numbers of class action lawsuit filings regarding bills intended to rein in the abuses by insurance companies of their captive borrowers.
In an effort to defend against an accusation of fraud, the banking industry has often fought back with its own attorney general. Recently, there have been growing efforts by state Attorneys General to aggressively pursue Wells Fargo. In response to these efforts, the nation’s largest financial institutions, including Wells Fargo, have become more aggressive in their efforts to defeat these lawsuits and defend against charges of fraud. Wells Fargo recently announced that it plans to increase its internal controls over its improperly authorized accounts. Attorney General Owens has stated that he will be investigating the matter and has threatened to take Wells Fargo into state bankruptcy court if the bank does not comply with his demands.
There is a strong possibility that the Wells Fargo National Bankruptcy Plan will face a significant public relations backlash. The public may view the bank as having “too much power” and will have an opinion on whether this plan is too intrusive into American Business and is an attempt by a powerful banking lobby to protect itself from competition. The plan could also backfire and force the other banks to turn back on some of their ill-advised activities. While we are awaiting the final analysis of the Wells Fargo National Bankruptcy Plan, I would urge my friends and members of our civic community to contact their elected officials and ask for their support for this important measure.