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
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I also received a check. How much did they get away with that wasnโt reimbursed?
Please add my wife and I to the class action lawsuit as same applies to us in CT. Wells Fargo defrauded us and sent the same vague letter. I want to fight this!
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Please add me
Hello I did the modification paid all my payments in the modification and still was denied the modification after I made the payments several times my house ended up going into foreclosure and we were put out on the street my whole family in the middle of the day without no forewarning or anything.
Please add me to the class action lawsuit as same applies to me in CT. wells Fargo defrauded me and sent the same vague letter. I want to fight this!
Please add me to the class action lawsuit as same applies to me in CT.
I received $400 last week along with the cryptic letter. I was denied a loan modification and was forced to file for bankruptcy and sell the home.
I also received a check for $800+. I called and they couldnโt tell me anything. Add me.
I received $500 from Wells Fargo with a vague letter