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Wells Fargo “Tax Service Fee” Class Action Lawsuit
By Matt O’Donnell
The class action lawsuit explains that the Tax Service Fee is supposed to be collected by Wells Fargo at the close of escrow to cover Wells Fargo’s costs of handling payment of real estate taxes assessed on property financed by Wells Fargo loans. The fee is properly collected from a borrower when Wells Fargo establishes an escrow account and pays real property taxes on that borrower’s behalf.
“However, about 10% of borrowers with a Wells Fargo home loan directly pay their own real property taxes. For these borrowers… Wells Fargo does not establish an escrow account for the payment of taxes and does not pay the borrower’s real estate taxes. Nonetheless, Wells Fargo charges and collects the Tax Service Fee from these borrowers, while providing no tax service,” the class action lawsuit states.
The Wells Fargo Tax Service Fee class action lawsuit is seeking damages and restitution for a proposed class of all persons in the states of California, Washington, New York and New Jersey who, at any time up to the date notice is provided to the Class, obtained a home mortgage loan from Wells Fargo, and were charged a Tax Service Fee even though they directly paid their real property taxes on the subject property.
The lawsuit is alleging violation of the Unfair Competition Law, Business and Professions Code; conversion; money had and received; and breach of contract.
A copy of the Wells Fargo Tax Service Fee Class Action Lawsuit can be read here.
The case is Ronald M. Gutierrez v. Wells Fargo Bank N.A. d/b/a Wells Fargo Home Mortgage and Wells Fargo Real Estate Tax Services, LLC, Case No. 12-cv-1135, U.S. District Court, Northern District of California, San Francisco Division.
Updated March 16th, 2012
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One thought on Wells Fargo “Tax Service Fee” Class Action Lawsuit
Please add me to this lawsuit.