Chapter 13 Bankruptcy Debtors who had mortgage loans with Wells Fargo may be getting some compensation for violations that occurred from 2011 to 2015.
By Suzanne Barlyn
(Reuters) – Wells Fargo & Co
will pay $81.6 million to homeowners for denying them a chance to challenge mortgage payment increases imposed during their bankruptcy proceedings, the U.S. Justice Department said on Thursday.
Wells violated a 2011 U.S. bankruptcy law by failing to send a type of legal notice about homeowners’ mortgage payment increases to bankruptcy courts. The law requires the notice to include disclosures to ensure that fees and charges by banks to homeowners in bankruptcy proceedings are accurate, the Justice Department said. Read more at: