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Hagens Berman Joins Class-action Suit against Wells Fargo over Trial Period Plans

^{Published on 2011-10-25 13:19:03 - Market Wire}
 

SEATTLE--([ BUSINESS WIRE ])--Wells Fargo (NYSE:WFC), one of the nationas largest mortgage providers, is the target of a class-action suit claiming the banking giant illegally refused to grant permanent loan modifications it promised homeowners who successfully completed a trial mortgage modification under the tax-payer supported Homeowner Affordable Modification Program (HAMP).

"We believe Wells Fargo used the false promise of permanent modifications to extract millions of dollars in payments from its customers"

The suit, filed in the United States District Court for the Northern District of California, claims that Wells Fargo committed breaches of contract and violated California consumer protection laws by misrepresenting the terms of the HAMP trial period plans (TPP), designed to be a path toward a permanent mortgage modification.

Under the TPP, Wells Fargo and borrowers agreed to a reduced mortgage payment amount, subject to a three month trial period to let borrowers prove their ability to meet the new obligation. Wells Fargo sent the borrowers letters explaining amake those payments successfully and fulfill all the trial period conditions, we will permanently modify your mortgage loan.a The lawsuit alleges that it failed to follow through on that commitment.

The plaintiff in this case, Amira Jackmon of Alameda County, Calif., purchased her home at the height of the housing bubble in 2005. With the market downturn, the value of her home plummeted below the value of her mortgage, making a refinance impossible. At the same time, she was laid off from her job. She inquired about the possibility of a modification and after receiving materials from Wells Fargo, signed its standard TPP agreement.

According to the complaint, she made the three monthly payments at a new rate and was instructed to continue making payments for four additional months. In May, 2010, Wells Fargo abruptly told her that her request for a permanent modification was denied. Wells Fargo immediately commenced foreclosure proceedings on her home, which was then sold at a trustee sale on May 27, 2011.

According to the lawsuit, the trial program was a ruse designed to induce consumers into sending payments to Wells Fargo, even when Wells Fargo knew that it had no intention of granting the permanent loan modification it promised.

Hagens Berman joins the Law Office of Peter Fredman in prosecuting the case. The firms believe the agreement that Wells Fargo sent homeowners was misleading, and they seek restitution of the payments made as part of the agreement. The firms also seek to recover all other funds or property lost because of Wells Fargoas alleged illegal activities.

aWe believe Wells Fargo used the false promise of permanent modifications to extract millions of dollars in payments from its customers,a said Steve Berman, managing partner for the firm. aWe will prove in court that Wells Fargoas operations turned a program designed to help homeowners into a revenue stream for the bank.a

Hagens Berman and the Law Office of Peter Fredman seek certification of the case as a class-action lawsuit, representing all California homeowners who completed Wells Fargoas TPP but were not offered a permanent loan modification. The complaint alleges that Wells Fargo breached its agreements with borrowers and has violated several California laws, including the Rosenthal Fair Debt Collection Practices Act and various unfair competition provisions.

If you are a California mortgage customer of Wells Fargo, and you completed a TPP but were not offered a permanent mortgage modification, you are encouraged to contact Hagens Berman at [ WellsFargoTPP@hbsslaw.com ] or call 206-623-7292. More information is available at [ www.hbsslaw.com/wellsfargoTPP ].

About Hagens Berman

Seattle-based Hagens Berman Sobol Shapiro LLP represents workers, whistleblowers, investors and consumers in complex litigation. The firm has offices in Boston, Chicago, Colorado Springs, Los Angeles, Minneapolis, New York, Phoenix, San Francisco and Washington, D.C. Founded in 1993, HBSS continues to successfully fight for investor rights in large, complex litigation. More about the law firm and its successes can be found at [ www.hbsslaw.com ]. Visit the firmas class-action law blog at [ www.classactionlawtoday.com ].