Tag: Wells Fargo

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Wells Fargo Sends Statement to Consumers with Important Updates following Scandal

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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

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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.

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, Credit, Debt Relief

Senator Elizabeth Warren Calls for Tough New Laws for Wall Street Executives

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During a hearing of the U.S. Senate Committee for Banking, Housing, & Urban Affairs, Sen. Elizabeth Warren grilled Wells Fargo CEO, John Stumpf, over alleged fraud during his leadership of the company.

Wells Fargo recently agreed to pay $185 million as a part of a civil settlement after it was revealed that employees were using customer information to open fake accounts. The bank has since fired 5,300 employees over the fake accounts that resulted in $2.6 million in fees that affected customers. The fees have since been refunded, however, Sen. Warren stressed to the Senate Banking Committee that further measures need to be taken to hold executives of the bank personally accountable.

“You should resign. You should give back the money you took while the scam was going on,” Sen. Warren told Stumpf who reportedly earned $19.3 million last year.

Sen. Warren went on to tell the committee that laws should be put in place to hold corporate executives personally and criminally responsible for fraud.

She ended her interrogation by adding, “We need tough prosecutors who have the courage to go after people at the top. Until then, it will be business as usual and at giant banks like Wells Fargo, that seems to mean cheating as many customers, investors and employees as they possibly can.”

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.

Credit, Timothy Kingcade Posts

Thousands of Wells Fargo Employees Fired over Phony Accounts

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Wells Fargo employees secretly created millions of unauthorized bank and credit card accounts without customer consent, according to federal regulators.  The phony accounts, some dating back to 2011, caused the bank to accumulate unwarranted fees and allowed Wells Fargo employees to boost their sales and increase profits.

“Wells Fargo employees secretly opened unauthorized accounts to hit sales targets and receive bonuses,” Richard Cordray, director of the Consumer Financial Protection Bureau (CFPB), said in a statement.

Wells Fargo confirmed to CNNMoney that it had fired 5,300 employees over the last few years related to the unethical behavior. Employees went so far as to create phony PIN numbers and fake email addresses to enroll customers in online banking services, the CFPB said.

In addition, Wells Fargo employees submitted applications for 565,443 credit card accounts without their customers’ knowledge or consent. Approximately 14,000 of those accounts incurred more than $400,000 in fees, including annual fees, interest charges and overdraft-protection fees.

Wells Fargo has agreed to pay “full restitution to all victims.” As part of the settlement, Wells Fargo must make changes to its sales practices and internal oversight. The bank agreed to pay $185 million in fines, along with $5 million to refund customers.

Even though the Wells Fargo scandal took place nationally, the settlement in L.A. requires the bank to specifically alert all of its California customers to review their accounts and terminate ones they do not recognize or want.

Click here 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, 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.

Foreclosures, Timothy Kingcade Posts

Wells Fargo Pays $70 Million Penalty for Foreclosure Mistakes

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Wells Fargo & Co. has agreed to pay a $70 million penalty ending the bank’s five-year fight to settle claims over foreclosure mistakes following the 2008 financial crisis.

This week, U.S. regulators announced the fine as part of an agreement that also frees the nation’s biggest mortgage lender from loan-servicing restrictions imposed last year. Wells Fargo has been accused of failing to move fast enough to fix deficiencies outlined in a series of settlements over improper activity including so-called robo-signing of foreclosure documents. The Office of the Comptroller of the Currency (OCC), also identified more recent problems, including faulty payment-change notices filed in bankruptcy courts and faulty escrow calculations.

The bank neither admitted nor denied wrongdoing in the OCC agreement.

Five years ago, Wells Fargo and most of the other largest U.S. mortgage servicers agreed to resolve allegations that they mishandled loan papers and fraudulently endorsed legal papers used in foreclosures after the crisis. Regulators amended that accord in 2013 after deciding the original plan failed to help affected borrowers.

A year ago, the OCC imposed new restrictions on Wells Fargo, JPMorgan Chase & Co. and four other companies, blocking them from buying mortgage-servicing rights because they had not yet met the demands of the foreclosure settlement.

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

$5.4 Million Awarded to Houston Couple in Foreclosure Fraud Case

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Sometimes David does beat Goliath.  It’s a story we have heard thousands of times since the housing crisis. Homeowners fighting the big banks to try and save their homes from foreclosure. Many times arguing that the lender or servicer has no legal authority to foreclose on their home.

One Houston couple recently took on one of the nation’s largest banks- and won! David and Mary Ellen Wolf received a foreclosure notice in 2011 from Wells Fargo.  There’s just one problem- The Wolf’s had never done business with Wells Fargo or their mortgage servicer, Carrington Mortgage Services.

After discussing the situation with their neighbor, who is also a  lawyer, they determined that neither Wells Fargo nor Carrington had the legal right to foreclose on them.  The issue of mortgage notes being transferred between lien holders and servicers after the mortgage was originated is not a foreign concept, but the Wolf’s argued that Wells Fargo violated Texas law.

According to the Houston Chronicle: Wells Fargo retroactively attached the Wolfs’ mortgage to a securitized trust that was closed and sold to investors three years earlier, the bank violated a Texas law that prohibits fraudulent real estate filings. The jury agreed, although State District Judge Mike Engelhart has not formally entered the verdict, and the bank and mortgage company have not said whether they’ll appeal.

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

A WIN for Florida Foreclosure Plaintiffs!

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Florida homeowners succeeded in getting a judgment in favor of Wells Fargo dismissed, allowing them to reverse a foreclosure action previously in favor of the bank.  The case, Hicks v. Wells Fargo, reached the Fifth District Court of Appeals in the State of Florida.  According to the complaint, the issue turned on the statute of limitations, with the Fifth District holding that the bank’s foreclosure claim was time barred by Florida’s five-year statute of limitations for foreclosure.

The homeowners claim it all began when an initial default occurred on June 1, 2006.  At some point, a prior holder of the note sued to foreclose on Sept. 8, 2006, but the case was voluntarily dismissed in 2008. Then, in 2011, the current note holder (Wells Fargo) sent a notice to accelerate to the borrowers. The second foreclosure action did not occur until 2013, which is seven years past the original default date.

The appellate court agreed with the borrowers that the 2013 foreclosure action by Wells Fargo is “time-barred” by the state’s five-year statute of limitations; however, the bank is not barred from pursuing new or remaining foreclosure claims that fall within the statute of limitations period.

“Despite the previous acceleration of the balance owed in both the instant suit and prior suit, the bank is not precluded from filing a new foreclosure action based on different acts or dates of default not previously alleged, provided that the subsequent foreclosure action on the subsequent defaults is brought within the statute of limitations period,” the court wrote.

So what can be taken away from this case? Florida’s statute of limitations period is sensitive and acceleration actions cannot suffice without a timely foreclosure action. However, not all is lost if a bank fails to file on time, as long as there is a new valid claim to bring forth.

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

Wells Fargo Pays the Consequences in “Shocking” Foreclosure Case

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A New Mexico judge issued a $3.2 million judgment against Wells Fargo & Co. for foreclosing on a man’s home after his death, even though he had a purchased insurance policy through the bank that would have covered the remaining balance on the mortgage. The judge called the bank’s conduct “shocking” and so reprehensible that in addition to damages, attorney’s fees and court costs; she awarded James Dollens’s estate $2.7 million in punitive damages.

Dollens had purchased an accidental death mortgage insurance policy for his Rio Rancho home that was marketed by Wells Fargo and issued by Minnesota Life. His death was reported immediately to Minnesota Life and to Wells Fargo to make a claim under the insurance policy.

However, instead of collecting funds from the insurance policy, Wells Fargo sent notices about the loan being in default and sent the loan to foreclosure. There was $125,000 owed on the mortgage.

When the bank received a $133,559 check from the insurance company in May 2011, it collected delinquent payments, late fees, and fees for lawyers and for 18 property inspections, leaving only $4,400 for Dollens’s estate ‘‘because of misapplication of the insurance proceeds,’’ the judge said.

Wells Fargo argues the family should have continued making payments regardless of the insurance policy. The judge called this case “a breach of the covenant of good faith and fair dealing- The bank’s unwillingness and failure to hold off on the foreclosure even when requested to do so by the insurance company was shocking.”

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.

Credit, Foreclosures, Timothy Kingcade Posts

Wells Fargo Pays $175 Million in Discrimination Lawsuit

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The Justice Department recently filed discrimination charges against Wells Fargo Bank, saying they steered African-American and Hispanic borrowers towards subprime mortgages or other mortgages with higher fees than white borrowers with similar credit scores. Wells Fargo agreed to pay $175 million to compensate borrowers who were wrongly forced into more expensive mortgages. The claims are violations of the Equal Credit Opportunity Act and the Fair Housing Act.
Unfair lending was identified in 82 geographic markets, in 36 different states. In Miami, approximately 4,100 borrowers were victims of higher borrowing costs between 2004 and 2008. In July, Wells Fargo announced it would stop doing business with independent mortgage brokers through its wholesale channel. From the payout $125 million will compensate consumers who were affected by the practices. The Justice Department said Miami would receive approximately $10 million. The remaining $50 million will assist homebuyers with down payments in various cities.
To read more on this story visit: http://www.miamiherald.com/2012/07/12/2893222/wells-fargo-pays-175-million-to.html
Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. 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, P.A. website at www.miamibankruptcy.com.