Wells Fargo Pays $12 Million to Settle Background Check Lawsuit

Based on court papers filed in the US District Court for the Eastern District of Virginia,  Wells Fargo Bank has agreed to a settlement of $12 million to resolve a class action lawsuit.

(see Manuel, et al. v. Wells Fargo Bank, National Association, Case No. 3:14-cv-00238-REP-DJN, in the U.S. District Court for the Eastern District of Virginia complete file here:

According to the settlement website, Plaintiff Terrell Manuel claimed he applied for and was offered a job at Wells Fargo Bank. At the time he applied for a job, Wells Fargo obtained a background check report about him from a third party Consumer Reporting Agency (CRA).

After Wells Fargo took an adverse action by denying him employment based on the background check, Manuel claims he was not given a copy of his background check report and other disclosures at least five business days before he was denied employment as a result of his report as required by the FCRA.

Two separate classes were certified by the Court in this background check class action lawsuit – the “Adverse Action Class,”which includes approximately 6,254 individuals, and the “Impermissible Use Class,” which includes more than 244,000 individuals.

Wells Fargo denies any wrongdoing and asserts that the background check settlement is not an admission of liability. The complaint is Manuel, et al. v. Wells Fargo Bank, National Association, Case No. 3:14-cv-00238-REP-DJN, in the U.S. District Court for the Eastern District of Virginia.