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
Please include me. They are totally scammers.
I was a cosigner on a home with my father. We ended up losing the home because no matter what we paid somehow our payments were always applied incorrectly. The payment amount kept changing. We were told we could do modifications more than once so that we could keep the home. My father and bonus mother lived in the home, but I started adding money to their monthly mortgage just to help them keep the home. The mortgage was around $650-700/mth initially. We were paying close to $1,500/mth once Wells Fargo was done with their โcalculationsโ. I spoke to a lawyer and was told the only way I could be removed from the loan was to file bankruptcy so thatโs what I did. Even after filing bankruptcy, Wells Fargo continued reporting the loan on my credit report even after I was done with the bankruptcy. My father eventually ended up having to do a short sale. My credit was ruined. I completed the bankruptcy in 2012. Wells Fargo sent me a letter last year (after 11 years) stating they reported information that was incorrect when we had the loan. So last week my father received this check everyone is referring to. It was $1,200. He said Wells Fargo sent another one a few months ago. There was no real explanation as to why we were receiving the check.
I received a check for $500. And I still have no idea what the $500 was 4 really
Wells has paid me for unauthorized checking acc ($1,700), I missed that class actionโฆ but has been messing with my ARM mortgage for 2-3 yearsโฆincreasing my rate now from 5.5-8.9.v I have asked about refis but the only response calculations I received included my car (almost paid off) and 2 credit cards and a HELOC all rolled in for 30 year which makes those payments endlessโฆ.not โpaid off).
Please add my nameโฆIโm glad this is coming up.
Beth, I had the same thing happen to me with the bogus checking account. I wasnโt aware of the class action suit. Iโve also had to contact Wells Fargo on several occasions about fees that should not have been on my account. I contacted them earlier this year about a fee that I needed an explanation for. I was told they could remove the fee but I needed to keep in mind that they have changed their policy and will only remove two fees per year. I was like, โThis fee was added because of an error you all made!โ They still stuck to the two fee story. Wells Fargo is some bs.
I paid off our mortgauge in December of 23. I have to wonder if I was overcharged and they just didnโt bother to let me know because it was paid off!!!
I received a cashiers check about 8 months ago for a mortgage with Wells Fargo years ago. I called to verify. They stated it is not a scam. I suspect it may have been more money owed.
I received a cashier check too. I have been wondering why. When I call the. They wouldnโt tell my anything . I pay the home of in 2022. I feel I over pay it .
I also received a letter, but when I phoned to inquire about the fee that was accidentally charged to me back in 2011-2012 they would not disclose anymore details. Please add me to the settlement.
We received a check a couple of months ago. Iโve suspected for years their accounting was off. How do we get on board?
Please add me. I owned a home in Arizona from 2008-2011. I also received a letter and when I called them they would explain in detail what it was about. I have not heard back from them as of yet. What do I do now?
Please add me. I owned a home in Arizona from 2008-2011. I also received a letter and when I called them they would explain in detail what it was about. I talked to two different people. I have not heard back from them as of yet. What do I do now?
We received two checks a couple months apart stating there was an error. I have had a mortgage with them since 2012. Iโd like to be added to the settlement.