Wells Fargo & Co. abandoned more than 40o householders as they illegitimately refused loan adjustments that might have helped them to keep their homes. The bank made errors while deciding if the borrowers were eligible for the adjustments in their home loans. This drove the bank to inappropriately refuse loan modifications to more than 600 borrowers in the dispossession procedure and then finish closure on 400 out of them.
Wells Fargo representative Tom Goyda said on Friday that the bank will be paying an amount of $8 million to reimburse customers who were affected by the foreclosure, which will be approx. $12800 per customer. He also added that the bank was disappointed by such an error that started displeasure about the bank’s practices and he believed every customer was compensated properly. Goyda said he couldn’t state what particularly incited the audit of the advance changes and the bank will conduct an investigation after these scandals.
The inappropriate refusals are only the most recent case of customer disservice caused by mistakes, negligence at Wells Fargo. The bank is under close administrative examination since it acknowledged that the bank representatives might have made a large number of unapproved checking and created other accounts. Last year the bank confessed that it had charged illegitimate expenses to some home loan borrowers.
The Federal Reserve addressed the issue by asking the bank to demonstrate to the authorities that it had proper measures to avoid customer mishandling. Wells Fargo was fined $1 billion notwithstanding the $185 million the bank had paid over the unapproved accounts issues.