New York law firm Harwood Feffer filed a class action lawsuit against a Wells Fargo (WFC: 27.21 +0.04%) servicer America's Servicing Company alleging it induced distressed borrowers to default on their mortgage in order to get a modification, meanwhile accruing late fees and penalties.
According to the suit, ASC allegedly told the borrowers now represented by Harwood Feffer that they would not be able to modify the mortgage as long as they were current. The firm said by making a loan default a pre-requisite for modification — even if the borrower qualified because of financial hardship — credit scores were harmed and fees, penalties and additional interest were charged.
The firm is suing ASC for compensation on those fees, totaling more than $5 million for the 12 plaintiff households. The suit was filed in U.S. District Court for the Northern District of California.
Read on.
2 comments:
Wells Fargo tried charging Mama $5,400+ in homeowners' insurance she did not need. They tried saying Mama's name was not exactly the same on the homeowners' policy compared to the mortgage paperwork. Mama included her middle name on one set of paperwork. Gee, Wells Fargo had no problem cashing Mama's checks with her middle name on it.
It took six months to get Wells Fargo to correct their problem.
OMG, Mr. Kitty. Sounds like Wells Fargo is a mess. Thanks for sharing.
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