Embattled bank Wells Fargo has entered a settlement through which the firm will pay as much as $50 million tied to a racketeering lawsuit that it allegedly overcharged hundreds of thousands of homeowners for appraisals of their homes.
Reuters said the settlement would still require court approval, and in fact, news of the proposed settlement came through a court filing in California, reported the newswire. The appraisals were ordered for homes where the owners were in default. The latest settlement, as noted by Reuters, comes amid waves of legal issues that have beset the company in the wake of revelations that it set up thousands of sham accounts to meet sales goals. The settlement would cover about 250,000 owners.
Reuters said that the appraisals had markups attached to them. The appraisals ranged from $95 to $125, while the actual cost came to about $50.