SAN FRANCISCO–Wells Fargo’s problems continue to grow. Several lawsuits have been filed against the bank after it extended the terms of mortgages and raised costs for customers who were in bankruptcy.
According to the suits, changes to terms of payment plans for those in bankruptcy are supposed to be approved by courts, but Wells Fargo changed the terms nonetheless without informing the borrowers. The bank has already been criticized by bankruptcy judges in North Carolina and Pennsylvania for unsolicited loan changes, with one judge saying the bank’s actions have been “beyond the pale of due process.”
According to the lawsuits, Wells Fargo changed terms on loans that allowed it to receive as much as $1,600 from government programs for every loan to which it made adjustments.