Posts Tagged: ‘Wells Fargo’

Wells Fargo Review Finds 1.4 Million More Fraudulent Accounts

September 11, 2017 Posted by kingcade

Last September Wells Fargo agreed to pay $185 million to settle three government lawsuits over the bank’s creation of fake accounts. Thousands of employees, trying to meet aggressive sales goals, created accounts in customers’ names without their knowledge. Workers who did not meet goals risked losing their jobs, while those who did meet their sales goals received bonuses.

At the time, Wells Fargo said that 2.1 million suspect accounts had been opened from 2011 to 2015, but it also acknowledged that the problems may have started earlier. The bank said it would expand the review to include accounts open from 2009 to 2011.

Last month the bank reported finding 1.4 million more accounts, bringing the number to approximately 3.5 million fraudulent accounts – nearly 70 percent more than the bank’s initial estimate. The bank has since released that 528,000 customers have been enrolled in the bank’s online bill payment service without authorization. The bank stated it will issue $910,000 to customers who incurred fees or charges, as a result.

“We are working hard to ensure this never happens again and to build a better bank for the future,” Timothy J. Sloan, Wells Fargo’s chief executive, said in a statement announcing the review’s results.

Senator Elizabeth Warren, Democrat of Massachusetts, released a statement saying, “Unbelievable. Wells Fargo’s massive fraud is even worse than we thought.”

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If you have any questions on this topic or are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Wells Fargo Latest Lawsuit Involves Customer Car Loans

August 14, 2017 Posted by kingcade

After settling one class action lawsuit involving the exploitation of customers by opening bogus credit card and savings accounts to meet sales goals, Wells Fargo faces another lawsuit involving its auto lending business and unnecessary auto insurance policies.

A borrower who financed an automobile in February 2016 through Wells Fargo filed a lawsuit in U.S. District Court in San Francisco on Sunday, July 30, claiming he was charged for insurance he did not need and is seeking class-action status to represent all U.S. borrowers in the same situation.

After more customer complaints, an internal investigation revealed that some 490,000 customers were charged for auto insurance they did not need and an additional 60,000 customers in states with specific disclosure requirements may not have been told about the insurance by the third-party vendor that issued it.

The loan contracts required customers to maintain auto insurance and allowed Wells Fargo to purchase it for them if the customer did not have insurance with another company.  Some 20,000 customers may have defaulted on loans and had their cars repossessed because of the additional charges, the bank said.

Click here to read more on this story.

If you have any questions on this topic or are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

 

 

Wells Fargo Accused of Making Improper Changes to Mortgages

June 20, 2017 Posted by kingcade

A new class action lawsuit accuses Wells Fargo of making unauthorized changes to home loans held by customers in bankruptcy.  The changes, which typically lowered monthly mortgage payments, appeared to benefit borrowers at first- but the details reveal the changes would extend the terms of the borrowers’ loans for decades, which means they would have monthly payments for far longer and owe the bank much more.

Any change to a payment plan for a person in bankruptcy is subject to approval by the court and the other parties involved.  But according to the lawsuit, Wells Fargo went ahead and made these changes to the home loans without such approval.

This puts borrowers in bankruptcy at risk of defaulting on the commitments they have made to the courts and could make them vulnerable to foreclosure. According to court documents, Wells Fargo has been putting through these un-requested changes to borrowers’ loans since 2015.

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Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Cities Can Sue over Predatory Mortgage Lending but the Standard is high

May 9, 2017 Posted by kingcade

The U.S. Supreme Court ruled that cities can sue banks over predatory mortgage lending to minorities that harms municipal finances, but cast doubt on whether these cases can succeed by throwing out a lower court decision (ruling 8-0) that had allowed litigation brought by the city of Miami to even move forward.

Miami accused Wells Fargo, Bank of America and Citigroup into pushing “non-white” borrowers into higher-cost and riskier loans they often could not afford, even if they had decent credit. As a result of these alleged discriminatory lending practices, property values declined due to the high rate of loan defaults, which led to foreclosures. The city of Miami said it lost property tax revenue and was forced to pay to repair and maintain the properties that went into foreclosure.

Justice Stephen Breyer said Miami had the legal standing to sue the banks, but needed to present more evidence that the injuries it claims to have suffered were tied to alleged violations of the federal Fair Housing Act. Miami accused the banks of a decade of lending discrimination in its residential housing market. Los Angeles, Oakland and several other U.S. cities have filed similar lawsuits.

Click here to read more on this story.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Wells Fargo, Ocwen and other Creditors Sued for Violating Chapter 7 Discharge

December 12, 2016 Posted by kingcade

Secured creditors Wells Fargo, Ocwen, RAS Boriskin and Duane Morris must pay a debtor who filed Chapter 7 bankruptcy $7,000 in emotional distress damages and $39,142 in punitive damages for willfully violating the discharge order.

Judge Cecelia G. Morris of the U.S. Bankruptcy Court for the Southern District of New York concluded that the creditors harassed the debtors for years by filing an illegal foreclosure action against the debtors’ property and sending numerous collection letters after their debt had been discharged in bankruptcy.

The debtors received more than 100 calls and notices for collection of the discharged debt in the past five years. This case is particularly noteworthy for the large amount of punitive damages and the emotional distress damages the debtors received, who represented themselves pro se.

The debtors in the case filed for Chapter 7 bankruptcy and their nonexempt assets were liquidated by a trustee and the proceeds were distributed to their creditors. They received a discharge of all of their debts in 2009.

The debtors alerted the secured creditors to their violations by contacting them after the discharge, but the creditors insisted they were doing nothing wrong. Instead of taking steps to correct the problems, the creditors and their attorneys wrote threatening letters to the debtors. The court found evidence that the creditors and their attorneys received notice of the debtors’ bankruptcy and discharge on at least 15 different occasions, but failed to stop contacting them.

Click here to read more on this story.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.