Lenders, landlords, and employers all use credit reports to screen applicants, to determine whether they want to enter into relationships with them. It is therefore important that credit reports be accurate. The complaint for this class action alleges that Wells Fargo Bank, NA furnishes false information to credit reporting agencies, claiming that certain mortgage accounts are in deferment or forbearance when the homeowners involved never requested or agreed to that arrangement. The complaint claims the bank has violated the California Consumer Credit Reporting Agencies Act (CCRAA).
Two classes have been defined for this action:
- Class A is all residents of California who, between September 18, 2014 and September 18, 2021, suffered inaccurate reporting in which Wells falsely reported a home mortgage was in forbearance without the consumers’ knowledge and consent.
- Class B is all residents of California who, between September 18, 2014 and September 18, 2021, suffered inaccurate reporting in which Wells falsely reported that no payments had been made on their accounts when the payments had been made in full and on time for the preceding three months.
The plaintiff in this case, Patrick Healy, owns a home in San Marcos, California under a mortgage issued by or serviced by Wells Fargo.
Borrowers like Healy make monthly mortgage payments to Wells, which is responsible for applying the payments to their mortgage loans on their behalf. Wells also furnishes information to credit reporting agencies about the current status of their mortgage accounts.
The complaint alleges that “in June of 2020, [Healy] discovered that Wells had been persistently reporting the false information that his mortgage loan account is in forbearance and that no payment had been made at all on the account for months.” The complaint alleges that this is not true, and that Healy has made his payments in full and on time.
Creditors therefore believe that the consumers are in default. The complaint alleges, “At a minimum, when a borrower’s principal residence is reported as being in forbearance status…, lenders and other consumers of credit[-]related information consider this a seriously delinquent status and will perceive the consumer’s financial circumstances as dire and not creditworthy.”
The complaint claims that Healy was refused a home mortgage refinancing loan because the account was reported as being in forbearance or deferment with no recent payments made.
The complaint alleges, “Upon information and belief, Wells unilaterally placed millions of home mortgage loan accounts in forbearance without the consumers’ knowledge or consent simply in order to avoid its own liability from a potential housing market crash that might arise from the Covid-19 crises.” The complaint claims that Wells placed borrowers in at least fourteen states in forbearances that they did not want or ask for.
The complaint claims that Wells has already been sued for this practice in Virginia.
Article Type: LawsuitTopic: Loans
Most Recent Case Event
Wells Fargo Reports Mortgages as Being in Forbearance California Complaint
September 18, 2021
Lenders, landlords, and employers all use credit reports to screen applicants, to determine whether they want to enter into relationships with them. It is therefore important that credit reports be accurate. The complaint for this class action alleges that Wells Fargo Bank, NA furnishes false information to credit reporting agencies, claiming that certain mortgage accounts are in deferment or forbearance when the homeowners involved never requested or agreed to that arrangement. The complaint claims the bank has violated the California Consumer Credit Reporting Agencies Act (CCRAA).
Wells Fargo Reports Mortgages as Being in Forbearance California ComplaintCase Event History
Wells Fargo Reports Mortgages as Being in Forbearance California Complaint
September 18, 2021
Lenders, landlords, and employers all use credit reports to screen applicants, to determine whether they want to enter into relationships with them. It is therefore important that credit reports be accurate. The complaint for this class action alleges that Wells Fargo Bank, NA furnishes false information to credit reporting agencies, claiming that certain mortgage accounts are in deferment or forbearance when the homeowners involved never requested or agreed to that arrangement. The complaint claims the bank has violated the California Consumer Credit Reporting Agencies Act (CCRAA).
Wells Fargo Reports Mortgages as Being in Forbearance California Complaint