Wells Fargo has been sued again, this time the complaint alleges that it bilked home loan borrowers by charging them extra fees when their applications were delayed — even when it was the bank’s fault.
Wells Fargo has agreed to pay $50 million to a class of more than 250,000 mortgage holders to settle claims that the bank improperly marked up fees for third-party home appraisals following loan defaults in California.
U.S. District Judge James Lawrence King ruled this week that Wells Fargo cannot force unnamed class members’ claims into arbitration in five lawsuits arising out of alleged improper re-ordering of overdraft fees that have been consolidated in multidistrict litigation in Florida.
U.S. District Judge William Alsup reinstated on Tuesday a penalty he first imposed in August 2010, saying the fourth-largest U.S. bank violated a California law that protects consumers against fraudulent misrepresentations.
Wells Fargo & Co. will pay nearly $13 million to put to rest a class action accusing it of receiving illegal kickbacks from its mortgage reinsurer, according to a deal signed off on by a Pennsylvania judge Friday.
The deal, which will amount to gross payments of $173 to each of the nearly 74,000 class members, resolves allegations that Wells Fargo accepted kickbacks from reinsurer North Star Mortgage Guaranty Reinsurance Co. in violation of the Real Estate Settlement Procedures Act of 1974.
Just as the holiday bills are about to come due, a federal appeals court Wednesday ruled that banks may post checking account withdrawals in a manner that allows them to garner higher overdraft fees.
Accusing Wells Fargo & Co. of reneging on a sweeping mortgage-modification deal, a lawyer for troubled homeowners is trying to reopen a case involving risky “pick-a-pay” loans written during the housing bubble.
A Kansas couple has filed a class action suit against Wells Fargo, accusing the nation’s largest mortgage lender of providing only “illusory trial loan modification programs” to borrowers facing foreclosure — without any intention of offering them permanent loan reductions.
According to a complaint filed in a federal RICO class action, Wells Fargo Bank and JPMorgan Chase charge homebuyers who go into default inflated fees and interest rates. Lead plaintiff Latara Bias claims the defendants, including Chase Home Finance, service almost 20 million mortgage loans, approximately 25 percent of the home loans made in the United States.
Judge King denied Wells Fargo’s motion to compel arbitration in the putative class action we have pending before him in MDL proceedings in the Southern District of Florida. The account agreements issued by Wells Fargo provided for permissive arbitration. That means if one party files in court, the other party has to immediately demand arbitration. These cases were filed in 2008, but Wells Fargo did not seek arbitration until April 27, 2011.
Further, Judge King had set a deadline in 2009 for Wells Fargo to file non-merit motions like motions to compel arbitration. Wells Fargo ignored this deadline.
The court recognized that the parties have done dozens of depositions across the country and have reviewed thousands of documents. This is a very good result for potential class members.
A foreclosed homeowner filed a class action complaint on behalf of distressed homeowners residing in New Jersey and Pennsylvania. The complaint was filed in the United States District Court for the District of New Jersey against Wells Fargo Bank, N.A. and one of its principal foreclosure law firms. The caption of the Complaint, filed on October 24, 2011, is Giles v. Phelan Hallinan & Schmieg, LLP, 1:11-cv-06239 (D.N.J.).
The Complaint alleges that Wells Fargo and Phelan, Hallinan & Schmieg, a high-volume foreclosure law firm in Pennsylvania and New Jersey, engaged in a fraudulent scheme to “pile on” unlawful foreclosure fees from financially troubled families on the brink of losing their homes. The lawsuit contends that, to carry out the scheme, defendants systematically filed falsified complaints, affidavits and mortgage assignments to bring foreclosure actions in the name of parties without legal standing to sue. Continue reading “Foreclosed homeowners file RICO class action against Wells Fargo and its law firm”
Bank of America Corp., JPMorgan Chase & Co. and other banks may pay more to resolve claims over their alleged roles in the collapse of a $2.3 trillion mortgage-backed securities market if sophisticated investors are allowed to sue as a group with less savvy ones.
In the latest legal fallout from the mortgage implosion, Wells Fargo & Co. has agreed to pay $590 million and accounting firm KPMG has agreed to pay $37 million to settle class action lawsuits brought by Wachovia bond holders and preferred shareholders centering on controversial “pick-a-pay” loans issued by Oakland’s World Savings and later Wachovia Corp. Wells Fargo purchased Wachovia Corp.