Skip to content

Carrier Management

Critical Information for P/C Carrier Executives

Highlights

  • Does Spending More $ on Defense Reduce Indemnity?
  • Growth Going to be Hard: Abel Talks GEICO, Berkshire Tech ...
  • P/C Industry Loss Reserves Redundant by More Than $20B: ...
  • Carrier Management
  • C-Suite
  • News
  • Research
  • Leadership
  • Markets
  • Regulation
  • Top 50
  • Members Only
  • Join
  • Login
  • Boardroom Agenda
  • CEO / Chief Executive
  • CFO / Financial
  • Underwriting
  • CTO / Technology
  • Risk
  • Brand Management & Sales
  • Investment Officers
  • Claims / Legal
  • Talent Management
U.S. Coasts Could See Double Whammy With El Niño, High Tide Flooding
U.S. Overdose Deaths Dropped in 2025, Policy and Drug Supply Concerns Remain
  • U.S.
  • International
  • Industry News
  • Government
  • Technology & Science
NICB Warns of Rising Contractor Fraud During Awareness Week
Waymo Recalls 3,800 Robotaxis Over Risk of Entering Flooded Roads

See all News

  • Executive Spotlight
  • Innovation
  • Strategy
  • Leadership
  • Performance
  • Growth Initiatives
  • Social Responsibility
For Carriers, AI Can Now Mean Hyper-Personalized Customer Service, Leaders Say
Executive Viewpoint: One AI Won’t Save You
  • Reinsurance
  • Emerging Markets
  • Global Economy
  • Personal Lines
  • Commercial Lines
  • Specialty
Why and How Homeowners Underwriting Must Change
Progressive Is Biggest Auto Insurer, Surpassing State Farm: S&P GMI
  • Insurance Regulation
  • Securities Regulation
  • Accounting & Tax
  • Rating Agencies
Who Will Be California’s Next Insurance Commissioner?
The Race for California Insurance Commissioner: Meet Steve Bradford
The Big Dog Is Off the Tech Porch: State Farm as ‘Next Gen Good Neighbor’
Progressive Is Biggest Auto Insurer, Surpassing State Farm: S&P GMI
Who Will Be California’s Next Insurance Commissioner?
Rational Market? How About ‘Dumb’ and ‘Bizarre’?

See all Top 50

Insurance Data and the Complex Loops Redefining Casualty Risk
How Your ORSA Can Be Retooled for a Competitive Advantage
Executive View: AI Strategy in Insurance Requires Plug-and-Play Operating Model
How Insurers Are Using AI to Manage Rising Catastrophic and Accumulation Risk

See all Members Only Content

Benefits

  • News for the P/C Insurance C-Suite - Focused reporting from reliable sources and experienced financial journalists.
  • Research and Analysis Not Found Elsewhere - Exclusive content from researchers think tanks, industry experts and respected analysts.
  • High-Profile Peers - Interviews with thought leaders in the global and U.S. insurance industry.

Online Access

Complete, unrestricted access to the popular CarrierManagement.com website, which provides insurance company C-suite executives with daily news, white papers, advice, instruction and editorial on how to manage insurance companies more efficiently and more effectively.

Another Wells Fargo Lawsuit, This Time Over Merchant Credit Card Fees

Print Email
August 7, 2017 by Dena Aubin

A Wells Fargo Bank joint venture that provides credit card processing services to merchants across the country has been hit with a lawsuit accusing it of using misleading sales tactics and over-billing for its services.

The proposed class action, filed on Friday in Brooklyn federal court, said Wells FargoMerchant Services promised merchants that it would give them transparent pricing but charged them unauthorized fees and disguised the fees with deceptive language in monthly statements.

Wells Fargo Merchant Services, a joint venture between Wells Fargo Bank and payment processor First Data Corp, helps process credit and debit card purchases for businesses.

“We deny the claims and plan to defend against the misrepresentations outlined in the lawsuit,” Wells Fargo spokeswoman Sara Hassell said. Pricing terms are fair, and the accusations “do not reflect how we operate our Merchant Services business,” she said.

First Data spokesman Mark Murphy declined to comment.

The lawsuit was filed on behalf of tour operator Queen City Tours in Charlotte, North Carolina, defunct Pennsylvania restaurant Patti’s Pitas, and other merchants across the country who say they were charged unauthorized fees by Wells Fargo Merchant Services. Hundreds of thousands of merchants were likely affected, the lawsuit said.

“Promises were made by aggressive sales tactics and then broken,” said Adam Webb, a lawyer for the merchants. The conduct goes back about six years, he added.

Wells Fargo has been grappling with a nationwide scandal over unauthorized accounts opened by employees in its consumer banking division and numerous lawsuits over its sales practices.

The third-largest U.S. bank last year agreed to pay a $185 million fine to the U.S. government to settle claims about the unauthorized accounts. On Friday, it said it would pay the government $108 million to settle allegations that it charged military veterans hidden fees to refinance mortgages.

The lawsuit regarding cards said Wells Fargo Merchant Services hit merchants with unanticipated or unauthorized fees, such as a $35 monthly minimum charge, after they signed three-year contracts that could be terminated only by paying a $500 penalty.

Wells Fargo buried some terms in a 63-page, fine-print guide that could never be completely read or understood by a busy merchant, the lawsuit said.

Statements sent to merchants described some fees as “interchange charges,” indicating they were imposed by a credit card network, when in reality Wells Fargo Merchant Services kept part of those fees as profit, the lawsuit said.

The case is Patti’s Pitas et al v Wells Fargo Merchant Services, U.S. District Court, Eastern District of New York, No 17-cv-4583. (Reporting by Dena Aubin; editing by Frances Kerry and Dan Grebler)

Copyright 2026 Reuters. Click for restrictions.
Print Email
Boardroom AgendaCEO / Chief ExecutiveClaims / LegalCommercial LinesIndustry NewsLitigation/Liability TrendsMarketsNewsRiskThe C-SuiteU.S.Underwriting

Was this article valuable?

Thank you! Please tell us what we can do to improve this article.

Thank you! % of people found this article valuable. Please tell us what you liked about it.

Here are more articles you may enjoy.

Why and How Homeowners Underwriting Must Change
Who Will Be California’s Next Insurance Commissioner?
Farmers Insurance in California: HO Rates Up 1.5%; Bundlers Get 22% Discount
Industry Concerned as Supreme Court Revives Lawsuit Against Freight Broker

Related Articles

Wells Fargo, National General Face CA Regulatory Scrutiny in Auto Insurance Scandal
Wells Fargo Admits Discovery of 1.4M Additional Bogus Customer Accounts
Suit Alleges Nestle’s Poland Spring Passes Off Ground Water as High-End H20
Wells Fargo Will Refund $80M to Customers Wrongly Charged for Car Loan Insurance
New York Regulators Seek Info From National General, Others in Wells Fargo Scandals
New Wells Fargo Disclosures May Jeopardize $142M Customer Class Action Settlement
Wells Fargo Will Fork Over $108M to Settle Lawsuit Over Veterans’ Loans
Another Wells Fargo Snafu: It May Have Harmed Customers by Closing Real Accounts
Wells Fargo Accused of Charging Improper Mortgage Fees in Proposed Class Action Lawsuit
Wells Fargo Customers Sue Bank, Alleging Insurance Scheme Was a Scam

Latest Magazine

Carrier Management magazine
View All

Research & Whitepapers

Free Newsletter

NewsletterSign up to receive daily news!

Latest

  • NICB Warns of Rising Contractor Fraud During Awareness Week
  • Waymo Recalls 3,800 Robotaxis Over Risk of Entering Flooded Roads
  • U.S. Coasts Could See Double Whammy With El Niño, High Tide Flooding
  • U.S. Overdose Deaths Dropped in 2025, Policy and Drug Supply Concerns Remain
  • Why and How Homeowners Underwriting Must Change
  • Progressive Is Biggest Auto Insurer, Surpassing State Farm: S&P GMI
  • Women’s Board Representation Slips Below 30% as Momentum Stalls
  • Despite Dip in Cargo Theft in Q1 This Year, Sharp Increase in Fraud Schemes Seen

News

  • NICB Warns of Rising Contractor Fraud During Awareness Week
  • Waymo Recalls 3,800 Robotaxis Over Risk of Entering Flooded Roads
  • U.S. Coasts Could See Double Whammy With El Niño, High Tide Flooding
  • U.S. Overdose Deaths Dropped in 2025, Policy and Drug Supply Concerns Remain
  • Progressive Is Biggest Auto Insurer, Surpassing State Farm: S&P GMI
  • Women’s Board Representation Slips Below 30% as Momentum Stalls
  • C-Suite
  • News
  • Leadership
  • Markets
  • Regulation
  • Top 50
  • Members Only
  • Videos

Headlines

  • Does Spending More $ on Defense Reduce Indemnity?
  • Growth Going to be Hard: Abel Talks GEICO, Berkshire Tech ...
  • P/C Industry Loss Reserves Redundant by More Than $20B: ...
  • How Modern is Modern Enough?

Resources

  • Videos / Podcasts
  • Contributors

Popular Topics

  • Boardroom Agenda
  • Technology
  • Financial
  • News

Brand Spotlight

  • Cotality
  • Cytora
  • HazardHub
  • Indico Data
  • Majesco
  • Verisk
  • Vertafore

Connect with us

  • Email Newsletters
  • Twitter
  • Facebook
  • LinkedIn
  • Do Not Sell My Info

Carrier Management

  • Submit Content
  • Advertise
  • Subscribe
  • Contact Us

Wells Media Group Network

  • Carrier Management iconCarrier Management
  • Insurance Journal iconInsurance Journal
  • Claims Journal iconClaims Journal
  • IJ Academy iconInsurance Journal Academy
  • Insurance Journal TV iconInsurance Journal TV
  • MyNewMarkets.com iconMyNewMarkets.com
© 2026 by Wells Media Group, Inc. Privacy Policy | Terms & Conditions | Site Map