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Sunday, April 21, 2024 | Back issues
Courthouse News Service Courthouse News Service

Class Claims Wells Fargo Forecloses Illegally

MARSHALL, TEXAS (CN) - Wells Fargo is "particularly deceptive" in foreclosing on homes by falsely accusing homebuyers who have filed for bankruptcy of being delinquent on their mortgages, by assessing "hundreds of millions of dollars" for debts that were already paid, and by abusing the bankruptcy code, a class action claims in Federal Court.

"Wells Fargo's policies and practices are particularly deceptive," the complaint states, "insofar as they involve the (1) intentional concealment of the fact that Wells Fargo has not properly accounted for debtors' bankruptcy plans and payments, (2) deceptive demands for payment of debts that are not owed but are presented to the debtors as actually owed and (3) intentional concealment of added fees and expenses when in fact federal bankruptcy law requires Wells Fargo to make application for such fees and expenses to the bankruptcy court.

"These polices and practices are not the result of neglect or indifference but are deliberately unfair, oppressive, malicious and unconscionable. Such misconduct has been documented in this case and throughout the United States. In formulating and executing these policies, Well Fargo has shown its complete disrespect and disdain for the Code and its evident belief that it is above the law.

Defendants' motives are purely economic. Through the policies outlined herein, Wells Fargo has appropriated substantial profits by flouting the requirements of the Code and the Fair Debt Collection Practices Act. Defendants' wrongful conduct is compounded daily by its continued collection and foreclosure efforts."

Named plaintiff Braylon Haynes is represented by lead counsel James Holmes of Henderson, Texas.

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