Wells Fargo is asking for dozens of its customers to resolve lawsuits they’re bringing through private arbitration, instead of court.
The bank asked the U.S. District Court in Utah to order its customers to settle their disputes outside the court, according to legal documents filed Wednesday. The motion is in response to a class action lawsuit Wells Fargo is facing for opening 2 million deposit and credit card accounts without permission from customers.
The scandal has roiled Wells Fargo, the third-largest U.S. bank, leading to the resignation of its CEO John Stumpf as the bank was probed by federal investigators. The bank has so far agreed to pay $185 million in penalties and $5 million to customers.
But Wells Fargo is trying to enforce mandatory arbitration rules it inserts into agreements its customers sign when opening a bank account.
In its filing Wednesday, the bank pointed to those agreements, which prohibit customers from joining class actions or suing the bank. The Supreme Court has said banks are allowed to impose such rules, although they’re criticized by consumer advocates and some Democrats for denying customers the legal protections of court proceedings.
Yet a court pointed to those arbitration clauses earlier this year when it dismissed another lawsuit against Wells Fargo.
