Wells Fargo class action lawsuit overview:
- Who: Plaintiff Barbara Prado filed a class action lawsuit against Wells Fargo & Company and Wells Fargo Bank NA.
- Why: Wells Fargo allegedly sent vague letters and cashier’s checks to buy off affected consumers without explaining how an error affected their mortgage loan accounts.
- Where: The Wells Fargo class action lawsuit was filed in California federal court.
A new Wells Fargo class action lawsuit alleges the bank overcharged tens of thousands of consumers on their mortgage loan accounts and attempted to settle the issue by sending cashier’s checks without explaining the error.
Plaintiff Barbara Prado alleges she received a letter claiming a Wells Fargo error related to her mortgage loan may have occurred. The letter also reportedly included a $500 cashier’s check. Two days later, she says she received a similar letter with an additional cashier’s check in the amount of $690.65.
The Wells Fargo class action alleges the bank overcharged consumers in connection with certain modifications to their mortgage loan accounts but failed to disclose the error that allegedly led to the overcharge.
“Indeed, it is not even clear from Wells Fargo if the ‘error’ was an overcharge or some other servicing error,” the lawsuit says.
Plaintiff says bank concealed Wells Fargo error and tried to buy off affected consumers
The Wells Fargo class action lawsuit says the bank’s “unscrupulous actions” were completely concealed until June 2024 when it began mailing cryptic letters with cashier’s checks to affected consumers.
The letters allegedly fail to provide any accounting or itemization to explain how the Wells Fargo error affected customers’ mortgage loan accounts.
“It is therefore impossible for a consumer to determine the amount of their actual damages, including their out-of-pocket harm,” the Wells Fargo class action lawsuit alleges.
Prado points to the bank’s “history of unscrupulous business practices” and says she believes the cashier’s checks are an attempt to buy off customers by paying them a nominal amount to compensate them for the Wells Fargo error.
“Wells Fargo intentionally disseminated vague letters to discourage consumers from looking into the issue further and exercising their rights,” the lawsuit states.
The Wells Fargo error class action lawsuit asserts claims for violations of California’s Unfair Competition Law, California Penal Code, conversion and unjust enrichment.
Another recent Wells Fargo class action lawsuit claims the bank charged consumers a fee when they deposited checks that bounced.
Was your mortgage loan account affected by the Wells Fargo error? Tell us about your experience in the comments.
Prado is represented by Abbas Kazerounian, Ryan L. McBride and Jonathan Gil of Kazerouni Law Group APC and Theodore O. Bartholow III and Karen L. Kellett of Kellett & Bartholow PLLC.
The Wells Fargo error class action lawsuit is Barbara Prado v. Wells Fargo & Company, et al., Case No. 3:24-cv-05105, in the U.S. District Court for the Northern District of California.
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119 thoughts onWells Fargo class action claims bank won’t disclose ‘error’ in mortgage loans
We received a check from Wells Fargo called asked about it. I said just cash it.
wells fargo refused modification loan and foreclosed on my home and still dont know why
I am recently dealing with similar issues with Wells Fargo home mortgage over predatory loan modification terms and forced me into bankruptcy. I filed complaint with CFPB and have heavy documentation of violations and no resolve yet. Please help I want to file against Wells Fargo as my most recent attempts to give Wells Fargo every opportunity to resolve the errors. They still lied and denied any wrongdoing
I sent a NOTICE OF ERRORS, to WELLS FARGO that provided letters from Wells Fargo that state they were not the owners of my mortgage on my property and sold. Wells Fargo has admitted to the Consumer Financial Protection Bureau, that “We completed our review, and the details of our response are below”. We made an effort to research your concerns but were unable to find a loan number or property information in our system of record”, Wells Fargo sent me multiple letters in response that they were not the Owners, Investors, Originators, Servicers or Acquired a Loan on my property.
On my loan modification I was charged for fee that never took place on three of my properties
I received the same letter and check. I’d be glad to share details with an attorney involved with any lawsuit related to this, but if it’s only for Californians, this wouldn’t apply to me. Please reach out if that’s not the case, and it’s possible I could be included.
A while back there was a class action against Wells Fargo for unjustly refusing to modify mortgage loans. I was told to contact Wells Fargo to see if I should be included. I was told no that I didn’t qualify. I couldn’t understand why because I was denied and they started foreclosure until I hired an attorney then they stopped the foreclosure and approved the modification. In the meanwhile they added a list of false charges. I continued to believe I qualified for the suit so I called again. The representative said they would do a audit and get back to
me. They didn’t and they sent me a breakdown of charges and payments but still said I didn’t qualify for the suit. I few months ago I received a check for over $2000 so I inquired to why they said it was overpayments of charges but wouldn’t specify what. They said I could appeal and sent me paperwork but I don’t know what I am appealing. The additional charges are still on my loan. I need an attorney that deals with them please advise me. Thank you
I received a check also and the lady spoke with at Wells Fargo was very vague I still don’t know what it was about but yet they sent a check. Doesn’t make sense
I received 2 checks several months apart with the same vague letter of explanation. I called the 800 number and spoke to a Wells Fargo employee and was told no further information is available. So what proof do I have that I received all I was entitled to? What are they hiding?