Tag: Wells Fargo Bank

Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

Wells Fargo Faces Penalties over Ignoring Student Loan Debt Included in Bankruptcy

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An important legal victory was recently obtained for a borrower attempting to discharge a student loan debt.  Ryan, the consumer, filed for bankruptcy and following the bankruptcy Wells Fargo Bank sued Ryan and obtained a state court judgment to collect on the debt.

Ryan had attended Capella University, a for-profit school.  In the case, Educational Financial Services, a division of Wells Fargo Bank, made the argument the loan was not actually discharged in the 2007 bankruptcy.  When Wells Fargo sued Ryan in State Court to collect on the student loan debt they made no mention of Ryan’s previous bankruptcy and discharge.

Ryan felt pressured to enter a consent judgment over the debt in 2008 and made monthly payments of $150 on the loan for the next seven years.  Frustrated, he sought legal help to reopen his previous bankruptcy case and his attorney raised the valid point, “that the loans from Wells Fargo were discharged by operation of law on November 29, 2007, because the loans were not a student debt protected by any subsection of Section 523(a)(8).”

The issue at hand was if Ryan’s discharge had been violated because the loans were not student loans under Section 523(a)(8).

“Given Wells Fargo’s actual and constructive knowledge of the timing of the Plaintiff’s loans, the “cost of attendance” at Capella University, and the nature of the Loans it extended to the Plaintiff, Wells Fargo knew or should have known that the Loans were discharged in the Plaintiff’s bankruptcy,” the complaint states.

The Judge ruled that even though Ryan had previously repaid the debt through the State Court judgment he was not prevented from reopening his bankruptcy and filing an adversary proceeding to rule on the discharge of his non-protected private student loan debt.

This is why it is important for anyone who includes student loans in a bankruptcy to pursue an adversary proceeding to get a ruling on the dischargeability of the loans, a key step which is often overlooked.

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For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all 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 McMaken, 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 McMaken website at www.miamibankruptcy.com.

Debt Relief, Foreclosures, Timothy Kingcade Posts

Florida Couple Triumphs in Foreclosure Appeal

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A Florida couple won an appeal in a foreclosure ruling by the 4th District Court of Appeal of Florida.  The appeals court determined the couple had a valid case and overturned the trial court’s decision, favoring the borrowers and that the bank, “failed to establish standing.”

In 2008, the couple defaulted on a loan three years after they signed a mortgage with the original lender, Bankers Mortgage Trust Inc. The couple was accused of two counts: 1. mortgage foreclosure and 2. “reestablishing” a note that was allegedly lost. A piece of paper attached to the copy of the note approved the new owner of the loan from the original lender to GreenPoint Mortgage Funding Inc. The claim about the lost note was dismissed after the bank failed to prove that it was the “legal and/or equitable owner and holder of the Note and Mortgage and (had) the right to enforce the loan documents.”

It didn’t help the bank when their sole witness, Pamela Bingham, who worked as a home lending research officer, couldn’t determine when the approval for GreenPoint Mortgage to take over the loan was included in the note or whether it was on the back or on another piece of paper, according to court documents.

The couple filed an appeal alleging the bank never provided valid evidence that it received the note from the original lender, and therefore it could not win the case as a non-holder in position with the rights of the holder.

“There was nothing, however, connecting the bank the endorsee of the note, GreenPoint Mortgage, to EMC Mortgage or the Bank,” according to the court. “In other words, the Bank failed to prove the series of transactions through which it purportedly acquired the note from the endorsee.”

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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.

Bankruptcy Law, Debt Relief, Foreclosures, Timothy Kingcade Posts

Wells Fargo and U.S. Trustee Program Reach Mortgage Settlement

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The U.S. Trustee Program recently announced that it has reached an agreement with Wells Fargo Bank requiring the bank to pay nearly $3.5 million in remediation to 8,000 homeowners in Chapter 13 bankruptcy.

The settlement arose in the Chapter 13 case of Ernestine C.J. Green, filed Nov. 30, 2011. Chapter 13 bankruptcy allows individuals receiving regular income to obtain debt relief while keeping their home. To do so, the debtor must propose a plan that uses future income to repay all or a portion of his or her debts over a three to five year period.

A debtor with a home mortgage can continue to pay the mortgage, or sometimes the Chapter 13 trustee appointed in the case pays the mortgage with income provided by the debtor’s earnings. Mortgagees or mortgage servicers are required under Bankruptcy Rule 3002.1 to file and serve notices when the mortgage payments change during the course of the Chapter 13 case.

The previous settlement in November 2015 contemplated that Wells Fargo would engage an independent reviewer to identify potential systemic issues in the bank’s operations.

“That compliance monitoring led to the discovery of a deficiency in Wells Fargo’s processes and procedures relating to the certificates of service filed with the PCNs” between 2011 and 2016, Jane Limprecht of the USTP told Bloomberg BNA. The deficiency caused “thousands of homeowners” to receive their change notices with fewer than the 21 days notice required before payment changes could take effect, she said.

The new settlement will provide refunds and credits to affected consumers, and Wells Fargo is required to change its procedures to prevent the problem from happening, again.

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.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Wells Fargo will pay $16.3 Million for Calling Customers’ Cell phones without Consent

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Wells Fargo Bank will pay approximately $16.3 million to end a proposed class action lawsuit alleging it used an Automatic Telephone Dialing System (ATDS) to contact customers’ cell phones without their consent.

The case Markos v. Wells Fargo Bank, N.A. was originally filed on April 14, 2015.  The Plaintiffs are asking for preliminary approval of a nationwide class action settlement reached with Wells. The original lawsuit alleged that Wells had called Plaintiffs and Settlement Class Members on their cell phones through the use of an ATDS or by using an artificial or prerecorded voice without Plaintiffs’ or Class Members’ consent, a violation of the Telephone Consumer Protection Act (TCPA). The calls at issue were all non-emergency, debt-collection calls and texts made in connection with Home Equity Loans and Residential Mortgage Loans.

Wells Fargo will pay a cash sum of approximately $16,319,000, to be distributed to the Class Members who file qualified claims. Based upon the size of the fund, the number of class members, and Class Counsel’s experience with over a dozen similar large settlements, the expected per-class-member cash award, while dependent upon the number of claims, may range between $25 to $75.

The proposed Settlement Class is defined as:

All users or subscribers to a wireless or cellular service within the United States who used or subscribed to a phone number to which Wells made or initiated one or more Calls during the Class Period using any automated dialing technology or artificial or prerecorded voice technology, according to Wells available records, and who are within Subclass One and/or Two.

  • Subclass One consists of “persons who used or subscribed to a cellular phone number to which Wells Fargo made or initiated a Call or Calls in connection with a Residential Mortgage Loan.”
  • Subclass Two consists of “persons who used or subscribed to a cellular phone number to which Wells Fargo made or initiated a Call or Calls in connection with a Home Equity Loan.”

Plaintiff’s attorneys are seeking 30% of the settlement fund (or approximately $4.8 Million) for their efforts on the matter while class member awards will receive be between $25 and $75. The Class Representatives could pocket $20,000 for “time and effort they have personally invested in the case.”

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If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all 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.

Debt Relief, Foreclosures, Timothy Kingcade Posts

$5 Million Foreclosure Fraud Verdict puts National Mortgage Settlement into Question

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A Texas jury’s recent decision to award more than $5 million in damages and fees for the fraudulent foreclosure of a single home has put the $25 billion national mortgage settlement into question.

This month, a jury in Houston awarded $5.38 million to a couple on the grounds that Wells Fargo Bank and Carrington Mortgage Services knowingly submitted false documents to force them out of their home. The financial compensation for the homeowners is as follows:  $150,000 in financial injuries, $40,000 for mental anguish, $5 million in punitive damages and $190,000 in attorney’s fees.

There have been approximately 6 million foreclosures since the start of the foreclosure crisis in 2008 and many of them were completed with robo-signed, fabricated or fraudulent documents.  If we apply the $5.38 million jury award to all of those loans, the potential cost from the foreclosure fraud scandal is closer to $32.28 trillion!

This estimate represents the extreme edge of the financial hit to the industry.  But while the settlement did not preclude individual civil suits like this one, it’s obvious that most victims of foreclosure do not have the financial means to go back and forth in court like this family did.

That is where law enforcement must step in and protect the rights of foreclosure victims lacking these type resources.  Looking at this verdict, the $25 billion National Mortgage Settlement has been anything but generous as it represents roughly 0.08 percent of the total possible exposure.

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.