Wells Fargo class action claims bank won’t disclose ‘error’ in mortgage loans

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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