If you’ve ever complained about the way Wells Fargo bank has handled your mortgage, especially if you wеrе rеquеsting a rеfinancе a mortgagе or applying for a federally funded loan modification you are in good company. As reported by several consumer groups and consumer rights organizations, Wells Fargo is second only to Bank of America in the number of complaints received each year and an overwhelming majority of those are mortgage related. And apparently. Where there’s smoke, there’s fire.
In 2012, the federal government charged Wells Fargo with massive mortgage fraud. Also in that year Wells Fargo was sued by a homeowner who won his case and was awarded $3.1 million. Elizabeth Magner, a federal bankruptcy judge in that case, characterized Wells Fargo’s behavior as “highly reprehensible”. There are at least 95 current lawsuits against the banking giant.
Among the top complaints found on consumer websites are:
• Poor customеr sеrvicе including unrеturnеd phonе calls and еmail, being directed to the wrong employees or department and ever changing representatives instead of a single person assigned to address an issue.
• Hidden fees, resulting in overdraft penalties.
• Delays in obtaining new mortgages; typically because of missing documents.
• A lack of notification when escrow charges increased; causing a snowball effect of late fees.
• Noncompliance with the federal settlement agreement.
Remarkably, in 2012 during another lawsuit, it was revealed Wells Fargo had created a “Foreclosure Handbook” whiсh inсluded speсifiс instruсtions for bank employees on how to proceed with a missing document without notifying the homeowner it was required. The intent was to keep the homeowner from stopping the foreclosure.
A majority of complaints shown on the Consumer Affairs website involve the Texas foreclosure process. Many detail the long grueling process for just getting documents submitted and then waiting for weeks, if not months for a response, which often requires more paperwork so the cycle begins anew.
The Consumer Financial Protection Bureau complaint database received 138,086 complaint about mortgages between July, 2011 and July, 2013. The vast majority of complaints fell into one of two categories, 1) About 55 percent were from people who had trouble paying their loans and involved modifications, collections and foreclosure, and 2) About 30 percent involved loan servicing, payments and escrow accounts.
Individuals with legitimate complaints against Wells Fargo and their lending practice seldom have sufficient influence to tip the scale to their favor. While lawsuits do happen, they’re expensive and Wells Fargo has deep pockets and they ability to keep the case going for years.
Oddly enough the Better Business Bureau (BBB) has given Wells Fargo an A+ rating. One of the few bright spots for the bank online. The website explains, almost like it feels it has to, the rating is determined using 13 factors. The website also indicates 2405 complaints against the bank with a resolution rate of less than 25%.