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Wells Fargo Buydown Settlement

Settlement Structure: Claims Made

Active: Open

Case Summary:

Wells Fargo Bank, NA is paying nearly $7 million to settle a class action related to its Buydown Agreements or Buydown Deposit Agreements. The complaint alleged that Wells Fargo (1) violated the federal Truth in Lending Act (TILA) by improperly disclosing the interest rate that would be in effect during the buydown; (2) used a method of applying interest to the loan that breached the terms of the buydown agreement; and (3) gave customers disclosures for the buydown agreements that violated state consumer protection laws.

Docket Number:

2:18-cv-03095-SJF-SIL

Company: Wells Fargo

Filing Deadline: January 1, 2100

Class Period: May 25, 2012 to May 25, 2018

Objection Deadline: June 6, 2021

Exclusion Deadline: June 6, 2021

Final Approval Hearing: July 27, 2021

Proof of Purchase:

You must provide certain tax-related documents, but no proof of purchase. If you are required to submit an IRS Form W-9, you may do so online at the settlement website. Presumably company records will be used to identify class members.

Eligibility:

You may be eligible if you belong to one of the following classes:

- TILA Class: All persons in the US who (a) entered into a buydown agreement with Wells Fargo in residential real estate mortgage transactions, (b) between May 25, 2017 and May 25, 2018, (c) in which Wells Fargo disclosed in the loan closing disclosure a lower effective rate of interest for an initial period followed by a higher interest rate thereafter, and (d) where Wells Fargo during the initial period amortized the loan at a rate higher than the lowest disclosed effective rate.
- Breach of Contract Class: All persons in the US who, during the class period, entered into a buydown agreement with Wells Fargo for a residential real estate mortgage transaction in which Wells Fargo disclosed a lower effective rate of interest for an initial period following by a higher rate thereafter but during the initial period amortized the loan at a rate higher than the lowest disclosed effective rate.

Typical Settlement Amount:

Share of the net settlement fund. Minimum payment at least $50 per buydown agreement. You may be required to submit certain tax documents in order to receive your payment. For more information, go to the Settlement Benefits Lookup at https://secure.buydownsettlement.com/benefits.

Total Settlement Amount: $6,945,095

Class Representative Proposed Incentive Fee:

Up to $12,500

Law Firms:
Schlanger Law Group LLP
Terrell Marshall Daudt & Willie PLLC

Claim Form: Wells Fargo Buydown Settlement Benefits Lookup

Case Name: Alejandro Carrillo v. Wells Fargo Bank, N.A.

Settlement Website: Wells Fargo Buydown Settlement Website

Claims Administrator:
JND Legal Administration

Claims Administrator Contact Information:

Buydown Settlement
c/o JND Legal Administration
P.O. Box 91345
Seattle, WA 98111
1-833-916-3596
info@BuydownSettlement.com

Tags: Buydown, Excessive Interest Rate, Mortgage-Related Unfair Practices, TILA, Your Bank