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 cashierโs 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 cashierโs 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 cashierโs check. Two days later, she says she received a similar letter with an additional cashierโs 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.
โIndeed, it is not even clear from Wells Fargo if the โerrorโ was an overcharge or some other servicing error,โ 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 bankโs โunscrupulous actionsโ were completely concealed until June 2024 when it began mailing cryptic letters with cashierโs checks to affected consumers.
The letters allegedly fail to provide any accounting or itemization to explain how the Wells Fargo error affected customersโ mortgage loan accounts.
โIt is therefore impossible for a consumer to determine the amount of their actual damages, including their out-of-pocket harm,โ the Wells Fargo class action lawsuit alleges.
Prado points to the bankโs โhistory of unscrupulous business practicesโ and says she believes the cashierโs checks are an attempt to buy off customers by paying them a nominal amount to compensate them for the Wells Fargo error.
โWells Fargo intentionally disseminated vague letters to discourage consumers from looking into the issue further and exercising their rights,โ the lawsuit states.
The Wells Fargo error class action lawsuit asserts claims for violations of Californiaโs 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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82 thoughts onWells Fargo class action claims bank wonโt disclose โerrorโ in mortgage loans
I just received the same letter above and a check for over $3900
I have asked for a breakdown which they said they would send me in 10 days have not received anything yet
2006, I purchased a family home in NY. I was steared into a loan with Wells Fargo when I already had a approved loan with another bank. 3 months after the closing, I learned I was sold a predatory loan from Wells Fargo. They sold the loan to Freddie Mac before I even closed. I had sent letters,called even went to a lawyer trying to get Wells Fargo to properly credit me and adjust the 30 year conventional loan. I was being overcharged. Was sold a costly fake appraisal causing me to overpay for the home and loan. Wells Fargo refused to fix the errors or work honestly with me as I did with them. I could not sell,refinance, nothing because of Wells Fargo scheme to cause me further damages.i was setting up a escrow account through another bank for taxes and insurance. I no longer trusted WF to handle anything. Before I could get all the funds for taxes, the county was threatening foreclosure. I contacted WF. They paid the taxes and tried to triple the charges to me.i refused and offered them tge money back for the taxes .They refused and then refused my house payments that I was never a day late on. They forced me into foreclosure. Served me a ROBO foreclosure. The local Court acted like they were being paid by WF to do whatever WF wanted and not allow me any rights to a honest,fair resolution. The Court knew the loan was predatory, unfair and dishonest but did nothing to keep it honest. I could not afford legal services and had no help anywhere from Government ,nothing. Freddie Mac forced WF to buy back the predatory loans,mine was one of them. I was in foreclosure from 2009 to 2017. WF ignored all actions and responses I filed with the Court. The foreclosure was actually beyond the statue of limitations when they resold all the predatory loans to a discount buyer who then forced the foreclosures. This was unjust, corruption in every way from Wells Fargo to the Courts. I am a victim of wrongful foreclosure, fraud, RICO VIOLATIONS, but to date,even government ignores the real issues here and even bailed Wells Fargo out knowing how corrupt that bank is and how it is rapping the people all over the globe.no wonder the Washington DC capital was stormed. People are sick of this all over.
Benzenia Townsend
WF added $19k to my modification.
I have always said I needed them to be investigated due to I think they added like 17,000 to or more to my balance when I modified my loan I wish I could get all that money back this is ridiculous I always said if there was something wrong with it and they keep telling me that it was correct and that cuz I asked him why did my balance goes up so much so yes I wish that somebody keeps investigating yes and I have gotten I think got two hundred dollar check. And the letter does not explain why it just says something about my mortgage.
Wells Fargo added a HUD Lien on my home of $117000 after they approved me for a modification without informing me about this. I found out about the Lien 3 years after the modification when I attempted to get a refinancing. I was told the Lien must be paid before I can get any equity out and then I will not be qualified to take so much in equity. They also increase my interest rate from 4.5% at purchase to 4,75% and added $500 more to my morgage after the modification. Wells Fargo is unscrupulous. They have now sent me 3 cashiers check tell me they made an error, in the amount of $4500, $200, $200. I have not cash the last 2 because my antenna went up. I need to get back my equity that Wells Fargo has stolen. This bank a criminals!! Please help me. Iโm in NY
Mine same situation
I got out it the program and had to pay over $3000.00 to be up to date
The with my credit report slammed me with late payments
Had to wait 12 months so I could refinance
Applied for a loan mtg that is when I found out in 2016
Wells Fargo was 6.75 was trying to get from Quicken loan 3.50 that was when I was told I had missed a mtg payment with Wells Fargo
I received the 500. check as well. I called them to ask why? Is this a real check as ppl donโt just send out money for free. I was told โno its a good check, and deposit it. I sat on it for 2 weeks as it weighed on me. WHY? I called a week later, ask to speak to a supervisor, as I want answers!! They told me that in 2010 a modification was done, or a refi. Wells fargo told us we qualified for this, 2 days later my brother passed away. We were already going thru grief and not knowing if my Mother would be ok after losing her son. We didnโt have enough money for me to go, so I stayed. I went to check on the home to find a letter on the door stating the home is in forclosure and we have 5 days to vacate. All while my Mother was in Ca. making funeral arrangements. So we had to move her stuff out fast. She moved in with me and then ended up having to go a rehabilitation due to her health, and depression etcโฆ
Wells fargo then told me 2 weeks ago, what happened is โshe was approved for the modification, but was told she was notโ. hence why we received the 500. I told them โdo you know what you did? You stole her home, while burying her son!! I get a check for 500. that is to make it right? She told me โSorry for your lossโ tho cash the check, and you can fill out the mediation paperwork. No cost to you, fill out the mediation paperwork (which is 4 questions) last question is โhow much do you feel you lost>โ how do you answer that? You stole a home?? I have the paperwork. I just donโt know how much money to put? I feel what the home is worth, I know Iโm not the only person they approved, then foreclosed on! Iโm at a loss, tho they did tell me why the check was sent. Thank you to anyone whom has advice!!
I have wrote several letters over years..nothing happens. I got a check because of errors. We have been in a modification 3 times. This last modification ended with out mortgage over by $400 more before the modification. We are on Social security and are 62 and 67 years old. The new year since modification for our loan to be paid off is 2068 . Really Wells Fargo are you serious. I called Wells Fargo over 20 or more times to let them know the new mortgage amount 1800 is more than both of our Social security checks. The reason for the modification was to try to get lower amount since 2014..But it went from 1475 to 1800 . This is most definitely a setup for only a win win for Wells Fargo. I submitted several complaints but all we get is ..we are following Wells Fargos Procedure. I pray I can go on news for now and want to tell all what is happening to us. Please help us
Wells Fargo sent cashierโs checks to affected customers as compensation but did not clarify the nature of the errors or how they occurred. This has led to concerns about the adequacy of the relief provided.
Who is affected by the lawsuit?
The lawsuit targets all individuals in the U.S. who received letters from Wells Fargo indicating errors related to their mortgage loans and received payments from the bank.
Does this matter if you have your mortgage payed off?
Wells Fargo has been protected for hundreds of years, whereas they are the biggest crooks. I started out with a fixed rate mortgage, then they changed my Loan Number without explanation, I went back to work part time and advised them I would be paying off my mortgage in the next few years at which time they started foreclosure proceedings as I was two months behind. After adding attorney fees, etc I came up with the arrears and took it to the local Wells Fargo Bank in my town. The clerks tried to input my payment however werenโt allowed at which time they got a supervisor/manager who also tried to submit pay?ent, he had to go so far as calling the main office and once off the phone told me he wasnโt sure why it wouldnโt allow them to take the payment. Needless to say, they came out on top and these class acyltion suits should include all states, so that maybe they can get what they really deserve๐ก
Wells Fargo added $60,000 to my mortgage when they did my modification also
I d
Hello, I did a modification back in 2013 and after it was processed I received an letter stating that they left some info out. So, I called and was told that a co- sponsor was added to my loan and 40,000 I will owe them if I ever foreclosure or sell my home that I will have to pay sponsor, which I never agreed or sign for anything such. Now that 40,000 has been added to my loan amount without my knowledge.
They canโt just add a co-sponsor to your loan agreement without your knowledge and signature. We went through something similar when buying a home with our local credit union bank . I suggest you get a credit expert to handle this as soon as possible. I can strongly recommend @creditsavy for this . Check him out on instagram or email directly mrcreditsavy/@/duck/com
The same thing happened to me on my loan modification around the same time in 2013. They added $40,000.00 to my loan that would need to be paid when I sell my home.
Wells Fargo ignored Clark county Nevada probate judge when the judge set aside the estate without administration order to me after my husband passed away they sold my house from underneath me and they never submitted a claim to probate Court which they had 90 days to do so also they never got permission from the probate judge to sell my home in Clark county Nevada. They make up their own laws and do whatever they want to do and now Iโm a widow without a home whereโs my help. Thank you for your time