Wells Fargo accused of charging undisclosed float fees to mortgage borrowers

Filed by borrower Lance Baird, the issue came to light in 2022 when Wells Fargo sent out vague notices to customers, admitting it had mistakenly charged float fees during the mortgage origination process. The bank apologized and enclosed cashier’s checks with the letters.

In Baird’s case, he received a $3,000 cashier’s check, over $2,000 of which was labeled a refund for a float fee, which lets borrowers keep their interest rate flexible during the mortgage process, with the option to lock it in at a later time, that he claims he never agreed to.

The lawsuit alleges the issue occurred for over a decade.

The suit, filed on July 15 and first reported by Law360, argues that Wells Fargo failed to explain how the error occurred or how it calculated the refund, making it…