wells 03Wells Fargo to Pay Homeowners $3.4 Million Over Mailing Error

 

This is a wsj.com article.

 

Processing error delayed payment notice letters to 8,000 bankrupt homeowners.

Mortgage lender Wells Fargo  Bank NA has agreed to pay $3.45 million over a processing error that delayed letters to nearly 8,000 homeowners in bankruptcy, shortening the notice time they got about changes to their monthly mortgage payment amounts.

In a letter filed to the court Thursday, bank officials said they have worked out a deal with a Justice Department watchdog agency, agreeing to fix the mailing error and promising to credit homeowners who received delayed notifications in the mail.

The processing delay meant that some homeowners weren’t getting 21 days’ worth of notice before a change in their mortgage payment amount—a period required under U.S. bankruptcy law, according to the letter filed in U.S. Bankruptcy Court in Greenbelt, Md. The delay meant that the letters were sent out a day or two after the mailing date recorded in court filings, the letter said.

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