Unknowing and Unwilling Applicants – Wells Fargo Class Action Alleges Automatically Placing Mortgagors into Forbearance Program
Wells Fargo & Company, and Wells Fargo Bank, N.A. are being sued for allegedly unilaterally opting mortgagors into unwanted forbearance programs that have caused injury to consumers. The Wells Fargo class action alleges that the company’s practice of opting the mortgagors into the government’s forbearance program without their consent has prevented the latter from taking out new loans or refinancing their existing mortgages.
The case is filed under the name: Urista, J. v Wells Fargo & Company and Wells Fargo Bank, N.A., Case No. 3:20-cv-01689-H-AHG, S.D. CA.
If you think you have been affected by these allegations, feel free to contact us anytime.
The Facts of the Case
The class action lawsuit alleges that “Wells Fargo unilaterally and without consent, and certainly without requesting or receiving any financial hardship attestation, opted unwitting clients into its COVID-19 mortgage forbearance program. In addition, Wells Fargo put through secondary requests for forbearance on behalf of homeowners who had asked to participate in the program initially but who did not ask for extensions and no longer wanted to be in the forbearance program.”
“Since the advent of COVID-19, approximately 5.5 million homeowners have participated in a mortgage forbearance program, either knowingly or unknowingly. Upon information and belief, Wells Fargo has deferred approximately 2.5 million payments and it is not clear whether any of those affected supplied such documents to Wells Fargo. The requirement of a volitional act on the part of mortgagor participants is intentional as mortgage forbearance has serious consequences for homeowners, including an inability to obtain additional credit and/or to refinance any existing loans. Wells Fargo benefits by unilaterally opting unwitting homeowners into its forbearance program in a number of ways, including retaining borrowers who might otherwise refinance their mortgages with other institutions.”
Editor’s note on the Wells Fargo Class Action Lawsuit:
This piece is written about the recent Wells Fargo Lawsuit. If you are considered eligible to be among the class of consumers described in the class action, you may eventually be able to participate in receiving any compensation the court may award.
If you believe that what is alleged in the Wells Fargo Class Action has affected you, please don’t hesitate to reach out to us.
We’d be happy to help you take a step in the right direction, fight this issue, and better enable you to join in on any potential consumer class action. If interested, please send an email to Outreach@ConsiderTheConsumer.com, find us on Twitter or Facebook, or even connect with us directly on our website! We look forward to hearing from you all.
Similarly, please check out our current list of Class Actions and Class Action Investigations, here.
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