Wells Fargo Class Action Lawsuit

Class Action Lawsuits Result in Wells Fargo Class Action Lawsuit

On June 8, the Class Action lawsuits of five Wells Fargo borrowers won class action certification for their respective cases. These five cases are a part of the nationwide Wells Fargo overdortgage fee class action lawsuit (mdl) against Wells Fargo Bank NA, charging that the bank engages in predatory and deceptive business practices through its bank overdraft policy. The class-action suit alleges that such predatory and deceptive policies have caused a large number of non-paying customers to be improperly charged fees by the bank. The lawsuits further charge that such policies have caused such customers to incur fees even when they have not actually used the accounts or even made any purchases on those accounts. Such lawsuits seek damages not only for actual monetary losses but also for injuries to mental peace and reputation caused by such wrongful actions.

The class-action lawsuit targets a wide array of Wells Fargo policies, from the controversial “points-of-sale” system, where homeowners were charged interest on their account balances for balance transfers; to the now-banking giant’s “robot” program, which the plaintiffs say does nothing but waste money on non-performing loans.

The class-action lawsuits further charge that Wells Fargo engages in unfair and deceptive practice with regard to its home loan modification program, denying to homeowners who applied for modifications or increasing the costs of modification for those who did apply. In some instances, the lawsuits charge that homeowners were instructed to lie about income in order to get approved for a loan modification. In some instances, homeowners were told that they would have to lose their homes if they did not get a loan modification.

In addition to a major fraud complaint, the class-action suit is also suing the banks for errors and omissions in its internal credit review process, as well as making out-of-pocket payments to attorneys and consultants to handle the initial mortgage loan modifications with Wells Fargo.

The class-action suit further claims that the company intentionally shortchanged homeowners on their loan payments in order to boost its profits and fleece them of their hard-earned money. Many of the class-action suits have been settled out of court, although a few are still ongoing.

There is also another case that was filed against Wells Fargo a few years ago related to the “points-of-sale” program.

This time, the class-action lawsuit targets not only the bank but the entire mortgage industry as well. A former Wells Fargo student loan representative was sued for telling a group of students that their car loans would be refinanced for them at no cost. The lawsuit says that the representative violated the Fair Debt Collection Practices Act by telling the students that their car loan would be discharged if they signed on the agreement. This case was later settled outside of court, without admitting or denying the charges. It is not clear whether this car loan defaulter’s settlement ever went to trial.

While many of these class action lawsuits are settled out of court, some are moving toward trial.

Two recent examples include one case in which a federal judge ordered Wells Fargo to pay damages to an individual who died as a result of negligence on the part of Wells Fargo. Another lawsuit involves an incident in which a young woman died after she underwent breast-cancer surgery at a Wells Fargo breast cancer facility.

The class action lawsuits are forcing banks to acknowledge their mistakes, but some legal experts question whether these suits will have any merit.

Lawyers for Wells Fargo argue that the financial industry has been hit by a variety of factors and there is no reason to expect the lawsuits to succeed. However, many consumers agree with Wells Fargo attorneys that the current system is too complicated for people to easily comprehend. In addition, many feel the banking giant is merely trying to do whatever it can to avoid dealing with these types of lawsuits. Nevertheless, as the class action lawsuits continue to grow in popularity, homeowners may find themselves much better able to deal with the financial problems they have faced.

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