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Second Wells Fargo Glitch Leads to More Foreclosures

Posted on January 3, 2019by Admin

Wells Fargo is in the hot seat once again when it comes to home foreclosures. Recently, Wells Fargo said a computer glitch led to the bank wrongfully denying customers the chance to either request a loan modification or repayment plan on their home mortgage. Now it appears an additional glitch has led to even more foreclosures.

This most recent mistake involves loan modifications submitted to Wells Fargo between March 15, 2010, and April 30, 2018. The computer glitch Wells Fargo claims happened is responsible for hundreds of homes being denied modifications during this time period.

The announcement comes after Wells Fargo admitted in November to a separate error in a filing with the United States Securities and Exchange Commission. The company admitted that a computer glitch led to the bank denying mortgage customers the opportunity to request either a repayment plan or loan modification. They reported that these denials happened approximately 870 times. Because of these errors, 545 homes went into foreclosure.

In this SEC filing, Wells Fargo reported that it was a calculation error that occurred when the bank’s program implemented newer controls that resulted in an overestimation of attorney’s fees for the homeowners who were in the middle of foreclosure. Because of this error, the bank rejected these 870 loan modification requests.

This is not the first time that Wells Fargo has made this mistake. Back in August, the company disclosed that yet another calculation error in the underwriting software mistakenly denied 625 borrowers loan modifications under a federal assistance program, resulting in 400 homes being foreclosed.

With delinquent mortgage payments on the rise this past year, the need for loan modifications and flexible repayment plans is more important than ever to homeowners. Mistakes like the one made by Wells Fargo can have disastrous consequences for homeowners already in a tough spot.

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Choosing the right attorney can make the difference between whether 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Wells Fargo Review Finds 1.4 Million More Fraudulent Accounts

Posted on September 11, 2017by Admin

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.

Credit, Debt Relief, Timothy Kingcade Posts

Wells Fargo Latest Lawsuit Involves Customer Car Loans

Posted on August 14, 2017by Admin

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.

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Bankruptcy Law, Debt Relief, Foreclosures, Timothy Kingcade Posts

Wells Fargo Accused of Making Improper Changes to Mortgages

Posted on June 20, 2017by Admin

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.

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.

Foreclosures, Timothy Kingcade Posts

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

Posted on May 9, 2017by Admin

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.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

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

Posted on December 12, 2016by Admin

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.

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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 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.

Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

Law Firm Sues Wells Fargo over Foreclosure Work

Posted on November 3, 2016by Admin

A New Jersey law firm has filed a lawsuit against Wells Fargo, claiming that the bank’s delayed efforts to fix its robo-signing problems led to the law firm’s demise. The law firm, Zucker, Goldberg & Ackerman, claims to have helped the lender foreclose on thousands of homeowners.

The lawsuit alleges that Wells Fargo took several years to comply with a 2010 New Jersey Supreme Court order that called for lenders to show that they were properly submitting mortgage details before foreclosing on a property. The law firm has since laid off most of its 335 employees within the last year.

According to the law firm, Wells Fargo’s delay in responding to the 2010 court order caused significant financial problems for the firm. The lawsuit states that under the bank’s agreement with mortgage lenders, the law firm would advance most of the foreclosure-related expenses and be reimbursed later. The lawsuit also states that the lender has refused to pay more than $2.5 million for work that Zucker, Goldberg & Ackerman did for the bank.

The firm was hired to file court pleadings, ensure compliance with state and federal regulations and research information such as ownership, payment history and title history for each case, according to the lawsuit.

Wells Fargo’s spokesman Tom Goyda released a statement that said the bank disagrees “with the claims regarding fees owed to the firm” and said that the lawsuit’s other allegations “should not be viewed as credible.”

U.S. Bankruptcy Court Judge Christine Gravelle scheduled a hearing on December 21^st.

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

Banks Revise Student Loan Contracts to Help Borrowers Avoid Automatic Default

Posted on November 2, 2016by Admin

Private lenders are revising student loan contracts to ensure borrowers are not placed in default when the co-signer of their loan dies or declares bankruptcy. In a letter obtained by The Washington Post, Consumer Bankers Association President Richard Hunt informed Consumer Financial Protection Bureau (CFPB) director Richard Cordray that the 10 member banks who offer student loans, including Wells Fargo, PNC Bank, Discover and Sallie Mae, have changed their policy on these type auto defaults.

The banks will no longer trigger a default when a co-signer dies, while most will do the same in the event of a bankruptcy. The same policy will apply with existing loans.

Earlier this year, the CFPB warned bankers that they were at risk of breaking the law by automatically placing people who were current on their loans in default. The practice occurs in the private student loan market, where banks and other financial firms provide education financing with loan contracts that give them the right to trigger a default, even if the loan is being paid on time. Auto defaults leave borrowers with no choice but to repay the entire balance of the loan or ruin their credit, making it difficult to purchase a home or car.

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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, 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, Credit, Debt Relief, Timothy Kingcade Posts

Wells Fargo Sends Statement to Consumers with Important Updates following Scandal

Posted on October 24, 2016by Admin

Nearly two months after the Wells Fargo scandal was first revealed by the Consumer Financial Protection Bureau (CFPB), the bank has issued statements to customers with important updates about the steps the bank has taken to make amends.

The statement begins by apologizing to consumers stating that, “We are deeply committed to serving you and your financial needs, and in those instances, we did not live up to our commitment. This is inconsistent with our values and with the culture we work hard to maintain. It’s not who we are as a company.”

The statement goes on to say, “Here’s what we are already doing:”

Putting your interests first. We have eliminated product sales goals for our retail banking team and members who serve customers in our bank branches and call centers.
Proactively communicating with you. We now send a confirmation after you open a new consumer or small business checking, savings, or credit card account so you know what is happening and can tell us if anything we have confirmed is different than what you expected.
Full transparency. You can always see your active accounts any time when enrolled in Wells Fargo Online.
Fixing what went wrong. We have provided full refunds to customers we have already identified and we are broadening our scope of work to find customers we may have missed. If we have any doubt about whether one of your accounts was authorized, and any fees were incurred on that account, we will contact you and refund fees.

The statement issued by the bank is the result of a CFPB investigation which resulted in the Bureau fining the bank $185 million for unethical business practices. The CFPB found the bank had opened approximately two million unauthorized deposit and credit card accounts.

Click here to read a timeline of events of the Wells Fargo Scandal.

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.

Related Resources:

http://www.bizjournals.com/atlanta/news/2016/10/22/wells-fargo-sends-customers-statement-about.html

Bankruptcy Law, Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

Wells Fargo’s Bogus Accounts, Echoes of Foreclosure Abuses

Posted on October 4, 2016by Admin

Wells Fargo’s Chairman and Chief Executive, John Stumpf, sat through hearings with the Senate Committee on Banking, Housing and Urban Affairs on Capitol Hill last month. During the hearings, Stumpf was drilled about the bank’s years long practice of opening bogus accounts for customers and charging fees to do so.

Throughout the hearings, many members of the Senate Committee took an opportunity to scold Stumpf. Senator Jon Tester of Montana told Stumpf, “You have done something I’ve never seen in 10 years, you have united this committee – and not in a good way.”

Financial experts are now saying that Wells Fargo’s latest scandal where they opened fake accounts and charged unknowing customers fees to do so is similar to the some of the elements in the foreclosure scandal. For example, both scams consisted of improper fees and forgeries.

A major difference between the two is that Stumpf has apologized to customers who were affected in the “account opening charade,” however, no such apology was made after the foreclosure scandal.

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