Follow us on Twitter and Facebook for the latest Class Action Settlement News!
Wells Fargo Mortgage Modification Class Action Lawsuit
By Sarah Pierce
A class of angry homeowners have filed a class action lawsuit against Wells Fargo claiming the banking giant illegally refused to grant permanent loan modifications it promised to give homeowners who successfully completed a trial mortgage modification under the Homeowner Affordable Modification Program (HAMP).
According to the Wells Fargo mortgage modification class action lawsuit, Wells Fargo committed breaches of contract and violated California consumer protection laws by misrepresenting the terms of the HAMP trial periods plans (TPP), designed to be a path toward a permanent mortgage modification.
The homeowners say they agreed to a reduced mortgage payment amount with Wells Fargo, subject to a three-month trial period to allow borrowers to prove their ability to meet the new obligation. Wells Fargo sent the borrowers letters explaining that if they "make those payments successfully and fulfill all the trial period conditions, we will permanently modify your mortgage loan."
According to the class action lawsuit, however, this never happened -- it was a ruse designed to induce consumers into sending payments to Wells Fargo, even when Wells Fargo knew that it had no intention of granting the permanent loan modification it promised.
"We believe Wells Fargo used the false promise of permanent modifications to extract millions of dollars in payments from its customers," said one of the attorneys representing the homeowners. "We will prove in court that Wells Fargo's operations turned a program designed to help homeowners into a revenue stream for the bank."
The Wells Fargo HAMP class action lawsuit is seeking restitution of the payments homeowners made as part of the agreement, as well as to recover all other funds or property lost because of Wells Fargo's alleged illegal activities.
Updated November 24th, 2011
All class action and lawsuit news updates are listed in the Lawsuit News section of Top Class Actions