Chicago, Illinois (PRWEB) October 26, 2012
Regardless of receiving billions of dollars in taxpayer bailout cash, Wells Fargo fraudulently misled and penalized buyers in search of to modify their loans, according to a federal lawsuit. The lawsuit was filed on behalf of Stephanie Watson and potentially, thousands of similarly situated homeowners across the nation. The law firm of Myron M. Cherry & Associates, LLC represents Ms. Watson.

Wells Fargo, according to the complaint filed these days, misled accountable home owners in want of support, telling them to miss mortgage payments and then assessing outrageous fees, mentioned Mr. Cherry. This practice has left property owners in need of help in a worse position than they have been prior to looking for support by way of these applications.

According to the lawsuit, homeowners searching for to modify their mortgages below the federal governments Residence Inexpensive Modification Plan (HAMP) were intentionally misled by Wells Fargo. The lawsuit alleges that the organization routinely advised buyers that they should miss mortgage payments or otherwise be in default on their loan, in order to qualify for a loan modification. When consumers followed this advice, Wells Fargo charged buyers substantial fees and penalties, reported delinquent payments to the credit reporting agencies and, in the end, failed to in fact modify the mortgage the lawsuit charges. As a outcome of this alleged practice, Wells Fargo avoided modifying mortgages whilst at the identical time collecting huge fees and penalties leaving clients in need of help in an even worse position.

The lawsuit seeks nationwide class action status and was filed in the United States District Court for the Northern District of Illinois (Case No. 12-cv-8578)