Karina Basso  |  December 4, 2014

Category: Closed Class Actions

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wells fargo class action lawsuit

A settlement has been reached in the Wells Fargo flood insurance class action lawsuit, which alleges Wells Fargo Bank NA improperly charged consumers with home mortgages flood hazard determinations (FHDs) and received illegal kickbacks for obtaining these FHDs.

According to federal laws, banks like Wells Fargo must determine whether a residential property and the structures on that property are located in a Special Flood Hazard Area (or SFHA) designated by the government before the bank can issue a home mortgage. This type of SFHA determination is called an FHD and according to federal statutes, Wells Fargo is within their rights to charge the mortgage borrower the fee for performing the FHD.

Wells Fargo Bank allegedly obtained the required FHDs through their affiliated company Wells Fargo Insurance (WFI). For each FHD obtained, Wells Fargo Bank would pay WFI $19 and would then charge this fee to their borrowers.

However, according to plaintiffs’ allegations, Wells Fargo Bank would receive illegal “kickback” payments from WFI for the FHDs. According to the Wells Fargo flood insurance class action lawsuit:

“Plaintiffs allege that when Wells Fargo Bank paid WFI for a FHD, WFI would pass a portion of the charge back to the Bank in the form of an accounting credit. Plaintiffs allege that because the $19 fee charged to borrowers for a FHD included the alleged ‘kickback,’ the actual cost of each FHD was less than $19, and therefore, Wells Fargo Bank unlawfully marked up the charge for each FHD. Plaintiffs contend that because Wells Fargo Bank’s and WFI’s costs for FHDs were allegedly less than $19, they overcharged for and marked up fees for FHDs.”

Based on this Wells Fargo class action lawsuit, the plaintiffs have brought several allegations against Wells Fargo Bank, including claims of violations  of the Estate Settlement Procedures Act, breach of contract, and unjust enrichment.

Wells Fargo has denied all liability and wrongdoing in this flood insurance class action lawsuit. However, the bank has decided to settle in order to avoid further court and attorney expenses, as well as the uncertainty of future litigation.

Who’s Eligible

You are a Class Member of the Wells Fargo flood insurance class action settlement if:

  • You had a home loan through Wells Fargo Bank secured through a primary or subordinate lien;
  • You were charged for Flood Hazard Determination by Wells Fargo Bank between Aug. 30, 2011 and Dec. 31, 2013; and
  • You received a postcard class action notice about the Wells Fargo flood insurance class action lawsuit and were identified as a potential Class Member
Potential Award

$9.50

If the settlement is approved by the Court, each Class Member of the Wells Fargo flood insurance settlement will receive a check for $9.50.

Proof of Purchase

In order to receive compensation from the Wells Fargo flood insurance settlement, each qualifying Class Member must sign and mail a complete Claim Form with all requested information including: name, address, Wells Fargo Loan Number, signature of borrower and co-borrower.

Claim Form Deadline

01/30/15

Case Name

Thomas Jackson and Patricia Jackson v. Wells Fargo Bank NA and Wells Fargo Insurance Inc., Case No. 2:12-cv-01262-DSC, in the U.S. District Court for the Western District of Pennsylvania.

Final Hearing

03/05/15

Settlement Website

www.JacksonSettlement.com

Claims Administrator

Jackson Settlement Administrator
C/O Rust Consulting
PO Box 1955
Faribault, MN 55021-6151
1-800-371-7303

Class Counsel

NICHOLAS KASTER PLLP

Defense Counsel

N/A

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10 thoughts onWells Fargo Flood Insurance Class Action Settlement

  1. Amy KILBURG says:

    9.50?? Are you kidding me?? We were charged 1,000’s of dollars for nothing!!
    You are the reason we lost our house, we could not afford the mortgage increase.
    Shame on you Wells Fargo

  2. Laura Branch says:

    Wells Fargo you owe me, $23,100.00.For ripping me off for only 8 years You bastards all need to go to hell!!!!

  3. Lynne says:

    What a joke!! All the money they sucked out of us?? I received notice a few months ago that I could lower my coverage to cover my loan- I figured they must of been forced to change their policies. It think they should pay me the thousands of dollars they screwed me out of. This is just so disturbing. I was paying $2600 and it will never flood here and every year I’ve had to increase coverage to match homeowners coverage. Our original loan company did not require this, only the loan balance and then Wells Fargo bought the loan. It’s just all ridiculous!!

    1. Ralph Rodes says:

      Exactly the same thing happen to me Lynne.

  4. annette says:

    yeah i am getting totally screwed every year by fema and wells fargo is now screwing me over. my house is near a creek but it has not flooded in 500 years or even 100 years . so i do not need flood ins. Now i have had to pay for flood ins and wells fargo is telling me that i dont have enough ins! i pay 1888. a year for this crap. bastards

  5. Donald Merkel says:

    That’s it a lousy $9.50. Guess Wells Fargo bought their way out of this one. What idiot of a judge thought that was a fair amount dumbass. I think I will hire my own lawyer and sue them for all the double coverage I had to carry for no reason. I was being charged for carrying more than what I needed. I think I will be talking to my lawyer today.Screw you Wells Fargo keep your fricking $9.50, I want the thousands you screwed my wife and me out of all these years.

  6. retired says:

    don’t spend all of the $9.00 in one hotel! LOL
    I did not have Wells Fargo, but the person I bought the property from might have.

    btw, FEMA had my **************** in a vise! I had to pay for a surveyor out of my own pocket to submit to FEMA showing I am not in a flood zone, and had my property removed from their lying bogus false maps… then got a huge refund for the money I was forced to pay. I was guilty until proven innocent, and had to pay out of my pocket for the survey by a licensed engineer. Guilty until proven innocent is how everything works here in the USA! You must pay out of your own pocket to bring the truth out! We have crooks running our government! If you are above the flood line, wherever you live, you have to hire a licensed engineer, submit it with the proper documents to FEMA showing them water does not run uphill! I save $2,500 per year after being removed from the FEMA flood map!
    File f

  7. Vi says:

    WF Bank believes in the lies it tells….karma reminds us the world is round and what you put out there is coming back to you …your size and power is no match for the truth

    1. Timothy Moreland says:

      I agree! WELLS FARGO HOME MORTGAGE Class Action Lawsuit 2015, I’m starting it today. email me and I will add your information to the documents that will become supporting evidence, if you have lost your home to their foreclosure practices and inconveniences they have to ensure no one is able to do the federal ordered modification. THE TRUTH WILL PREVAIL. We need to band together and get them stopped.

      1. Rich says:

        This cost me $23000 and I get $9?? I was scammed

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