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April 24, 2014 / Corina Valderrama

Lawsuit Filed Against Wells Fargo for Loan Modification Violations

Henry and Renee Garcia have filed a potential class action lawsuit in California federal court against Wells Fargo alleging it violated California consumer laws by billing late fees to, or foreclosing on, state homeowners who had loan modification applications pending with the bank.

According to the lawsuit, Wells Fargo practices “dual tracking”, which is when a bank pursues a foreclosure while simultaneously processing loan modifications. On January 1, 2013, the California Homeowner Bill of Rights was enacted, prohibiting this conduct.

The Garcias allege that they applied for a loan modification with Wells Fargo but the bank charged them $840 in late fees and prepared to foreclose on their property before their application process was complete. The lawsuit seeks to establish two subclasses: one for alleged victims of dual tracking and another for homeowners who were illegally charged late fees.

If you or someone you know has suffered from a similar experience, please contact Khorrami Boucher, LLP for a private consultation.


One Comment

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  1. Matthias / Oct 2 2014 5:44 pm

    Good information. Lucky me I recently found your blog by accident (stumbleupon).
    I have book marked it for later!

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