Preliminary approval has been given to a class action lawsuit settlement between Wachovia and certain borrowers who obtained Pick-a-Payment mortgage loans between 2003 and 2008.
The Wachovia Pick-a-Payment class action lawsuit settlement will resolve claims that World Savings Bank and Wachovia Mortgage (a division of Wells Fargo Bank) violated various state and federal laws in connection with the Pick-a-Payment mortgage loan product. The lawsuit is styled In re Wachovia Corp. “Pick-A-Payment” Mortgage Marketing and Sales Practices Litigation, Case No. M:09-CV-2015-JF.
The Pick-a-Payment mortgage loan permitted borrowers to select and make a minimum payment amount for a limited time under certain conditions. When a payment was insufficient to pay the interest owed, unpaid interest was added to the loan balance and the outstanding loan balance increased (a practice called “negative amortization”). Plaintiffs in the Wachovia mortgage class action lawsuit claim that Wachovia did not adequately disclose the Pick-a-Payment loan’s potential for negative amortization.
Wachovia denies any wrongdoing but has agreed to establish a $50 million settlement fund to resolve the case.
If you obtained a Pick-a-Payment mortgage loan for a primary residence from World Savings Bank or Wachovia Mortgage at any time between August 1, 2003 and December 31, 2008, you may be eligible to claim money from the $50 million Wachovia class action settlement.
The amount of money you can receive will depend on how many people file valid claims and which Settlement Class you fall into:
Settlement Class A includes borrowers who no longer have a Pick-a-Payment mortgage because they sold the property securing the loan, refinanced the loan, personally paid off the loan, or have already obtained a loan modification that converted the loan to a regular mortgage.
Settlement Class B includes borrowers who still have a Pick-a-Payment loan and their mortgage payments are not 60 or more days past due (as of December 16, 2010).
Settlement Class C includes borrows who still have a Pick-a-Payment loan and who are 60 days or more past due (as of December 16, 2010).
If you are a member of Settlement Class B or C, you do not need to do anything to receive a payment from the Wachovia Pick-a-Payment settlement. You will automatically be mailed a payment if the settlement receives final approval.
If you are a member of Settlement Class A, however, you must submit a claim form postmarked no later than March 16, 2011 to receive a payment from the class action settlement. Claim forms will be available on the Settlement Administrator’s website on January 28, 2011.
For more information on how you can receive money from the Wachovia Pick-a-Payment Class Action Lawsuit Settlement, visit the Settlement Administrator’s website at www.pickapaysettlement.com.
302 thoughts onWachovia “Pick-a-Payment” Mortgage Loan Class Action Settlement
I never got a $178.04 check OR a $2000 check. I am in Class B, meaning I paid my mortgage on time and never was late. What letter form to fill out in December? I never got one. Anyone else on here in Class B? Thanks, and I’ll be reading this blog every day until answers appear!
After being drug about for SIX MONTHS, WF said I had too much money! What’s that have to do with their lying to me and conning me into the loan with false info THEY put into the application? I guess that IS the way that the law works– you can be a crook if you can afford enough attorneys!
They SWINDLED, THEY SHOULD PAY!
does that now wor
Gina, I appreciate your information above!
I think I was wrong about the date I posted earlier. I was moving at the time and i already new my new address. I got a letter in October 2011 stating I needed to fill this claim out by Dec 16th or there about. I filled it out online because I met the criteria to do so and submittet it mid October. I know this because I moved to my new place on Oct 20 2011. I had put the new address so the check would come there. Does this sound right to everyone? Did anyone else get theirs done last quarter 2011? Just want to make sure that I did everything right. I appreciate your information above. Thanks, Bret Placerville, Ca
i sent another follow up email to the administrator last monday. they said that the funds should sent out on the 2nd quarter of this year.
They are waiting for funds from Wells Fargo for disbursement. The court order has not been finalized. The fuds won’t be available unitl at least May 2013 and it won’t be as much as you thought it would be.
Hello does anybody know anything yet? Still waiting by the mailbox .thanks
kathleen, you may want to contact your state attorney general’s office for that info…each state is handled by that office. goodluck!
I am checking my mailbox daily as well however the number Bret posted I was told is only for California…I am in Oregon and filled out all the same paperwork and made the deadlines too. Anyone know who to call in Oregon? Kathleen
bret, you can email [email protected] or call at: 1-877-265-3993. i emailed them on feb. 7, they replied: “We do not have a distribution date at this time.” on the letter, it said the checks should be mailed anytime after 1/31/12. so it could be one month or a year later :( …i’m hoping it’s sooner though.