Retailers Sue Wells Fargo Over Processing Fees

Three businesses have filed a fraud lawsuit against Wells Fargo & Co., alleging the San Francisco-based bank imposed numerous improper charges on California businesses for processing credit card transactions.

The plaintiffs in the Los Angeles Superior Court suit are Wayne Leasing Corp. in Marin County, An Elegant Gift Inc. of San Francisco and Gene & Jim’s Auto Repair in Los Angeles County.

The suit, which was filed Tuesday, alleges unfair business practices and misleading advertising by Wells. The plaintiffs are asking the court to order Wells to repay the alleged overcharges and to quit making them.

The suit also seeks class-action status on behalf of all California businesses. In court documents filed in a similar case that Wells settled last year, the bank said about 80,000 California merchants use its credit card processing services, according to Howard M. Jaffe, an attorney for the plaintiffs.

Wells said it clearly disclosed fees to the businesses, which agreed to them.

“Also, the fees were based upon industry market rates and representations these merchants made about their businesses in their applications,” Wells said.