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Wells Fargo Forbearance Policy Under Scrutiny During COVID-19 Pandemic Consider The Consumer

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Wells Fargo Forbearance Policy Under Scrutiny During COVID-19 Pandemic

What’s Up With the Wells Fargo Forbearance Policy?

Banking clients of Wells Fargo are suing the company to court for allegedly putting customers’ home loans in forbearance without asking for their permission first. 

According to a report appearing on the website TheRealDeal, Wells Fargo, one of America’s banking giants, has put many of its customers’ mortgages with the bank into forbearance without their explicit permission. The banking company allegedly moved mortgages into forbearance if a bank client reached to the company and shared that they were experiencing financial hardship due to the onslaught of the Coronavirus disease-2019 (COVID-19) global pandemic. The economy of the United States and the rest of the world have been put to the test because of the negative repercussions the pandemic brought with it in global and nationwide trading and economic activity. 

The bank’s action to move mortgages into forbearance without the express consent of the customer allegedly hurt their credit reports. Bereaved consumers argue that though there is federal legislation in place that helps them being granted forbearance from banks, the borrower’s consent should be secured first and should never be skipped by banks and other financing institutions. 

In the bank’s defense, they shared that they have taken a “customer-focused approach” to the situation. Speaking with Law360 as cited by the same article appearing on the TheRealDeal website, Wells Fargo’s Tom Goyda said that the company has just wanted to make sure that every Wells Fargo client who is in dire need of a payment relief will be able to receive it as soon as possible, without any delays of some sort. 

Goyda adds that a bereaved customer can reach out to their nearest Wells Fargo bank in order to know how they will have their records moved out of forbearance. They assured that they are working it out with their banking clients who may have been negatively impacted by the company’s move. 

Wells Fargo was sued earlier in July this year by their customers who have been put into forbearance without their express permission. 

Editor’s note on Wells Fargo Forbearance Policy Under Scrutiny During COVID-19 Pandemic:

This news article is created to keep you in the know and inform you of the latest news with regards to the lawsuit filed against Wells Fargo for their forbearance policy.

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