Checks Issued to 740,000 Consumers

Checks for $149 have been sent to 740,000 consumers across the nation as part of a $150 million settlement that Charlotte, N.C.-based Wachovia Corp. (NYSE:WB) agreed to earlier this year in U.S. District Court in Philadelphia.

The settlement arose from banking arrangements Wachovia had with telemarketers to process payments for product orders made over the telephone. Individuals who receive settlement checks ordered products or services from one of the telemarketing firms and paid by remotely created checks that didn’t require a customer’s signature.

The telemarketers used the remotely created check to withdraw funds from customers’ accounts, regulators said.

The federal Office of the Comptroller of the Currency says a large percentage of consumers said the checks were never authorized or that they never received the products or services offered by the telemarketers.

In agreeing to the settlement, Wachovia did not admit any wrongdoing.

The checks from Wachovia were mailed last week by the United States Court Settlement Administrator. As a result of the bank’s settlement of a related class action lawsuit, the mailing also contains a process for consumers to request further reimbursement if they believe they have been charged for bank fees that would not have been imposed had the transactions in question not occurred.

Wachovia's brokerage division, Wachovia Securities, is based in St. Louis.