Class Action Accuses Wells Fargo Of Home Loan Fraud

Posted by Orb Staff on September 10, 2009 No Comments
Categories : Residential Mortgage

A new class action has been filed against Wells Fargo Bank, challenging the bank's suspension of home equity line of credit (HELOC) accounts and credit limit reductions.

According to the lawsuit – filed on behalf of borrower Marika Hamilton, Fort Wayne, Ind. – Wells Fargo fraudulently froze millions of dollars in home loans by falsely claiming that its customers' finances had materially changed.

The suit further alleges that Wells Fargo suspended accounts based on disputed "derogatory" items on borrowers' credit reports.

A press release issued by attorney Jay Edelson, KamberEldeson LLC, states that Wells Fargo suspended Hamilton's HELOC account despite her "stellar credit history." The derogatory item that Wells Fargo used to support its suspension was a $25 late charge that, according to Edelson, was caused by Wells Fargo in the first place.

"Wells Fargo caused a late charge to be put on Ms. Hamilton's credit report that never should have been there to begin with," he says. "It then used that item to justify suspending her entire credit line. Adding insult to injury, the bank then threatened her and her business if she dared to stand up for herself."

Edelson is joined on the suit by KamberEdelson attorneys Steven Lezell and Evan Meyers.

SOURCE: KamberEldeson LLC

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