A new lawsuit filed in California accuses Wells Fargo of concealing that it improperly charged undisclosed float fees to mortgage borrowers during loan origination.

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 impossible for consumers to assess their damages. The complaint alleges the bank’s actions were a “throw-away effort” to avoid liability, placing the burden on borrowers to figure out the harm.

“Wells Fargo tiptoes around the issue by putting the burden on the consumer to figure out whether the amount offered was sufficient to cover the damages caused, when Wells Fargo knows they did not,” the complaint states.

The suit, seeking class action certification, includes over 100 members, with potential damages exceeding $5 million, excluding attorney fees and other costs.

Wells Fargo declined to comment.

The mid-July suit follows a string of legal troubles for the financial services company. In early July 2025, a suit naming Wells Fargo, Citi and two credit firms as defendants was filed in a California court in May for allegedly violating the Fair Credit Reporting Act. 

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