Myron M. Cherry & Associates, LLC Brings Lawsuit Against Wells Fargo for Alleged Misrepresentations In Connection With Federal Loan Modification Programs

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Despite receiving billions of dollars in taxpayer bailout money, Wells Fargo fraudulently misled and penalized customers seeking to modify their loans, according to a federal lawsuit.

This practice has left homeowners in need of help in a worse position than they were prior to seeking help through these programs.

Despite receiving billions of dollars in taxpayer bailout money, Wells Fargo fraudulently misled and penalized customers seeking 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 country. The law firm of Myron M. Cherry & Associates, LLC represents Ms. Watson.

“Wells Fargo, according to the complaint filed today, misled responsible homeowners in need of help, telling them to miss mortgage payments and then assessing outrageous fees,” said Mr. Cherry. “This practice has left homeowners in need of help in a worse position than they were prior to seeking help through these programs.”

According to the lawsuit, homeowners seeking to modify their mortgages under the federal government’s Home Affordable Modification Program (“HAMP”) were intentionally misled by Wells Fargo. The lawsuit alleges that the company routinely advised customers that they must miss mortgage payments or otherwise be in default on their loan, in order to qualify for a loan modification. When customers followed this advice, Wells Fargo charged customers substantial fees and penalties, reported delinquent payments to the credit reporting agencies and, ultimately, failed to actually modify the mortgage the lawsuit charges. As a result of this alleged practice, Wells Fargo avoided modifying mortgages while at the same time collecting huge fees and penalties – leaving customers in need of assistance 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)

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