Wells Fargo Settles With Maryland AG Over Allegedly Deceptive Mortgage Marketing

(AP) BALTIMORE — Maryland Attorney General Doug Gansler has announced an agreement with Wells Fargo relating to allegedly deceptive marketing of adjustable rate mortgages written by companies it acquired in 2008.

Gansler said Thursday that the settlement involves mortgages written by Wachovia and Golden West Financial.

Gansler says the settlement will create loan modifications for some customers. He also says Wells Fargo has agreed to pay about $940,000 for restitution to "Pick-a-Payment" borrowers who lost their homes in foreclosure.

The attorney general's Consumer Protection Division says Wachovia and Golden West did not fully explain to borrowers who chose a loan with payments that were less than the interest actually due that their minimum payments would not cover the full interest and that their principal debt would actually increase over time.

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Comments

[UberdanSounds]

11:22 PM on 01/05/2012

Well, at least someone is getting something out of these crooks. They also got busted for overdraft charges by picking the higher debits to process first. then once your account is empty, they process each smaller transaction resulting in a $30 NSF fee. Trust me, it happened to me, and the snot nose punk on the other end of the phone yelled at me like it was my fault. I caught them in a lie w/computer screenshots to prove it. Course, I never heard about that class action til it was over with.

[GetRealSoon]

08:14 PM on 01/05/2012

Crime pays.

[mm3264]

05:12 PM on 01/05/2012

Will the CEO and major shareholders (the responsible parties who set policy) be doing much jail time?

[UberdanSounds]

11:18 PM on 01/05/2012

Oh that's a good one~! I haven't laughed all day, I needed that thanks.

[Wolfman Thomas]

04:48 PM on 01/05/2012

it was alright when they all made their big commission and loan fees

[jwilson1]

04:36 PM on 01/05/2012

Another Fraud swept under the table!

[REDSTATEREFUGEE]

03:26 PM on 01/05/2012

Following their popping her account for a new service charge, my wife recently moved her Wells Fargo operating funds to a local, regional bank here in California. She reported that, when she entered the place, they treated her as if they were pleased to see her.

I am waiting until I exhaust my personalized checks with another Big Bank and, then, I , too, will follow suit. Reason? Having been reduced in my paid hours at work, I could only afford to add small amounts per month to my passbook savings account, from which I was forced to withdraw most of the balance to pay for an expensive auto repair, needed to get to work. My bank then hit me with a $15.00 service charge.....much more than I would have made in less than 1% APY interest in a year.

Bottom line: Please consider moving monies to either local financial institutions or local credit unions, both of which will treat you more fairly and appreciate your business. A collateral benefit will be your money will be applied locally, improving the economy in your own region....

[traceymarie]

02:50 PM on 01/05/2012

Negative amortization loans, except reverse are a dangerous and now illegal practice.

[Collapsing House Price]

04:46 PM on 01/05/2012

Reserve mortgages are more evil.

[traceymarie]

05:07 PM on 01/05/2012

Why? They allow seniors to take up to 80% of their equity, have no mortgage payments, utilize the tax free $'s anyway they want. The estate has 9-12 months to either sell the property or pay off the loan. Any extra goes to the estate, if the house sells for less then the amount owed, the bank takes the hit.

[traceymarie]

05:25 PM on 01/05/2012

How do they enslave the home owner and inflate prices