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Wells Fargo Inspection Fees Class Action Overview:
- Who: A homeowner whose mortgage is serviced through Wells Fargo has filed a new class action lawsuit against the bank.
- Why: The plaintiff alleges the bank charged her and other homeowners millions of dollars in property inspections that were not required.
- Where: The lawsuit was filed in federal court in New Jersey.
A fraudulent mortgage servicing scheme run by Wells Fargo, which sees the bank collect illegal fees for property inspections, has bankrupted homeowners and caused them to lose their homes, a new class action lawsuit alleges.
The nationwide class action lawsuit was filed in New Jersey by lead Plaintiff Jane Hart who alleges that the bank illegally charged her and other homeowners that were in dire financial straits millions of dollars in property inspection fees that were not required, “putting their homes in jeopardy and, in some instances, resulting in bankruptcy.”
According to the class action lawsuit, Wells Fargo uses a computer system to automatically assess fees for property inspections without regard to the terms of the borrowers’ mortgage loans or the relevant circumstances.
“Instead of being based upon reasonable parameters, the computer system was programmed to assess as many charges as possible and to pay first all outstanding fees and costs before satisfying interest and principal,” the claim reads.
According to the claim, the computer-generated inspections are unreasonable, confer no benefit on the lender, and serve no discernible purpose other than to generate revenue for Wells Fargo, and that is further evidenced by the limited nature of the inspection themselves.
“The property inspections ordered by the Wells Fargo computer system are mere ‘drive-by’ inspections, i.e., the inspector “drives by” the property ostensibly to assess whether the house is occupied, being maintained, and has not been damaged- a practice that provides little, if any, real opportunity to determine whether the lender’s interest in the property is at risk,” the class action lawsuit reads.
It adds that Wells Fargo personnel do not read the inspection reports. As a result, the observations contained in the initial inspection have absolutely no bearing on whether another inspection will be ordered in 20 or 45 days.
Hart’s mortgage loans were serviced by Wells Fargo from their origination with World Savings Bank, FSB in 2004, until it transferred its responsibilities to another servicer effective April 2021, according to the class action lawsuit.
Wells Fargo began to charge Hart’s mortgage account for inspection fees beginning in May 2011, after Hart missed payments on her mortgage, according to the class action lawsuit. Despite Hart entering into a payment agreement with the bank, it charged her $20 for each inspection conducted between May 2011 and March 2012, and $15 for each inspection conducted after March 2012, the lawsuit says. Many of those inspections were double ups or unwarranted, it adds. Wells Fargo continued to charge Hart’s mortgage account for property inspection fees until at least October 2018.
Wells Fargo has profited enormously from this fraudulent scheme, the lawsuit states, with fees paid by Hart and others generating the bank hundreds of millions of dollars in revenue.
The claim adds that Wells Fargo repeatedly sent Hart “materially false and misleading agreements, contracts, and monthly mortgage statements” that concealed the nature of the improper and unlawful inspection fees by listing them on the borrower’s statement only as “other charges.”
Hart wants to represent a nationwide and New Jersey Class of mortgage holders who have been charged unwarranted inspection fees by Wells Fargo. She is suing for breach of contract, and violation of state consumer laws and federal racketeering laws.
She is seeking certification of the Class, order of enjoinment, damages, interest, legal fees and costs, and a jury trial.
Have you ever been charged a property inspection fee that you think was unwarranted? Tell us about your experience in the comments section!
Hart is represented by Catherine E. Anderson of Giskan Solotaroff & Anderson LLP and Roosevelt N. Nesmith of the Law Offices of Roosevelt N. Nesmith LLC.
Wells Fargo has not yet made an appearance in the case as of late Friday.
The Wells Fargo Inspection Fees Class Action Lawsuit is Hart v. Wells Fargo Bank NA, Case No. 1:21-cv-14644, in the U.S. District Court for the District of New Jersey.
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92 thoughts onWells Fargo ‘Fraudulent’ Mortgage Servicing Fees Bankrupt Homeowners, Put Homes at Risk, Class Action Alleges
I have the proof that Wells Fargo and western Union knew 2004- to present day. I filed a complaint with the Cfpb, a joke, I actually filed the complaint against cfpb Wells Fargo and western Union. Bank statements mortgage statements western Union records confirmation numbers 13,000. In one month. They were taking bank payments wire payments and blatantly stealing from every consumer. They are still being allowed to, the cfpb, is a joke. They do absolutely nothing to actually help consumers. Their financial fraud is worse than Bernie Madoff. They have done more damage to consumers and the housing market. How are they still in business. 2005 mortgage statements with instructions on how Wells Fargo and western Union have made it easier. Directions on mortgage statements on joe to use western Union ez pay.
After the first complaint I filed, was told to bad Wells Fargo’s records of our account show that no western Union payments were made.
I have been able to prove they had been made. Not denying it just sorry but it’s not enough. Ok, I’m dealing with and talking about a company that has been sued and fined 20+ times. Now the Cfpb sends all complaints about Wells Fargo to Wells Fargo! I’ve been able to prove the western Union payments, sorry but again there records prove differently rent, Oh they say they only go back 7 years. So Wells Fargo can only go back 7 years and western Union only to 2017. This all changed when western Union saw the bubble burst coming and began insulating themselves from any lawsuits in the future, by claiming they were never aware and if they were they were not willing and knowingly involved with Wells Fargo and EZ payments through western Union.
I have said since I filed the original complaint. I know we made the payments and we were not behind. I have said since the beginning, I took my receipts from western Union, and I was told that I would have a number wrong or switched. I have those actual wires and on them you can see, the 4 that wasn’t wrong, that’s what I was being told repeatedly! It started in 2004 when we first bought the house. It’s still continuing to this day.
I didn’t send all the papers for Wells Fargo to inform me that we had been late or not making payments. When I’m fact we were and had made our payments. The blatant strealing started basically as soon as we signed the contract with Wells Fargo. As you can see we made payments from our bank account that shows up months after the actual date of payments. We we’re making our regular house payment and literally bring bombarded with final notification, the mortgage statement sending payments to Baltimore MD, rhe final notice from North Carolina,!the amount of bills and statements. The western Union receipts that started in 2007 showing proof of payments to be told I was off a number. I filed complaints with Wells Fargo as early as 2007, not knowing that western Union and Wells Fargo were just blatantly stealing everything. In 2009 11,000. I. One month of payments between western Union and bank payments!
We payed and payed. I have never changed what I have said regarding Wells Fargo and their out right criminal actions and activities for so long. Now with the help of the Cfpb, Wells Fargo, western Union, still are robbing consumers. I have proven time and time that all my statements have been true.
We are asking for 5 million dollars now since it’s the 3rd time filing a complaint to be told that oh well you don’t have any proof. This proves no matter how or when or what payment process we made, Wells Fargo has continued to refuse to compensate us for now the 22 + years, never denying what I’m claiming, because what I have claimed has been true.
So knowing this and knowing we were and had always been making our house payments, on top of the years and years of double triple billing claiming we never made the payments.
So we would have never should have been to a loan modification let alone one that raised the principal and extended the payments for another 30 years. The forced bankruptcy, add the health damage to my wife. Knowing she made everyone of the payments only to be told we were past due. In one month 13,000. In 2009. The mortgage statements are not even right, 2011 shows we never had a loan modification.
I want 5 million for the fact I have proven with our first 3 complaints.
Wells Fargo is still allowed to run a criminal enterprise along with western Union and the Cfpb. This is why no consumer can get any type of restitution from years and thousands and thousands of dollars stolen. Stolen by our mortgage company and the payment services they insisted we use due to the easiness they together made for us.
Now I’m retired with limited funds my wife is now disabled, mainly due to the stress of dealing with Wells Fargo and western Union, which in turn caused a genetic disorder to take over again due to and still the stress of all this. When I should just get a call as to were to wire our money.
Wells Fargo claims they can only go back 7 years western Union can only go to 2017.
Good thing I have 2004-2011 of just illegal and blatant stealing of every payment made, western Union, our bank account, it didn’t matter Wells Fargo took them all.
Please add me. Wells Fargo Mortgage is a dirty business.
Please add me. I have been a victim of Wells Fargo based on the same as above.
Wells Fargo fraudulent charged me fees throughout our loan, even apply to themselves on “our” behalf for a new loan and denied us and charged us. We never apply for another loan. Them transfer our loan for another to service our loan and charge us additional fees never explained.
We have been charged fees for inspections and have a lot of issues with our mortgage company.We just need someone to look at our paperwork.