An individual interested in learning more about class action litigation in the realm of consumer protection would be quickly and well served by simply googling this phrase: Wells Fargo and home foreclosure.
Try as it might, the bank just can’t seem to shake off adverse news and publicity for long. Its foreclosure activities in recent years that have suddenly come under a harsh spotlight spell just the latest downside in a series of public-relations nightmares for the national entity.
To wit: Remember the millions of fake accounts created by employees aggressively vying for commissions generated via spiked premiums and account fees?
Now it’s foreclosure madness. Bank officials recently informed many hundreds of prior Wells Fargo homeowners who held mortgages and were displaced from their homes through foreclosure actions that, well, it was all a mistake.
What really happened, states an official communication that offers adversely affected parties a paltry remedial sum to make things better, is that a software error rendered applicants for loan modifications ineligible.
The bottom line was really this: They were good to go. Had there been no error, most of them would likely have been able to remain in their homes rather than being ordered out the door.
That was unquestionably tragic, with things being turned upside down for families across the country. It is unlikely that many of them will respond favorably to Wells Fargo’s trifling financial offer to make amends.
One thing the bank has secured is this: its name as defendant on a lawsuit seeking class action status that was recently filed in a federal court.
“Don’t just blame it on the software,” says one of the plaintiffs. “Where was the human oversight?”