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Class Action Filed Against Wells Fargo’s Loan Servicing Unit, America’s Servicing Company (ASC) for Deceptive Loan Modification Practices

NEW YORK (LoanSafe.org) – The law firm of Harwood Feffer LLP (www.hfesq.com) today announced that it filed a class action lawsuit against Wells Fargo Bank, and its loan servicing division, America’s Servicing Company (“ASC”), for fraudulent and deceptive practices related to loan modifications.

The lawsuit, filed in the United States District Court for the Northern District of California, Forster, et al. v. Wells Fargo, et al., Index. No. [pending assignment], alleges that ASC improperly and unlawfully induced borrowers to default on their mortgages by informing borrowers that loan modifications would not be considered for those individuals who were current on their payments. By making loan default a pre-requisite for modification, without regard to whether a borrower otherwise qualified for a modification due to financial hardship, or ASC caused borrowers to unnecessarily suffer ruined credit and subjected them to significant fees, penalties and interest.

ASC is a loan servicer, meaning it does not have a beneficial interest in the mortgage loans it oversees but rather is contracted to administer and enforce the terms of the mortgage agreement. As a loan servicer, ASC generates a significant portion of its revenue from fees, penalties, and interest collected on the non-performing loans it services. Consequently, it is in ASC’s financial interest to avoid, delay, and deny loan modifications and to pursue foreclosures because doing so will lead to increased revenue.

A copy of the complaint is available on the firm’s website (http://www.hfesq.com) or can be obtained by contacting the firm. If you believe you were a victim of ASC’s mortgage loan modification scheme (meaning you went into default based on ASC’s representation that you would not qualify for a loan modification otherwise), you may be part of the proposed class. For more information on this case, you may contact Jeffrey M. Norton (jnorton@hfesq.com) or Roy Shimon (rshimon@hfesq.com) via email or toll free at (877) 935-7400.

For over two decades, Harwood Feffer has been a nationally recognized firm that specializes in complex, multi-party litigation with an emphasis on securities, ERISA, consumer fraud, products liability and civil rights litigation. Harwood Feffer serves as lead counsel in numerous class actions on behalf of investors, employees, and consumers and has recovered hundreds of millions of dollars in recoveries for its clients.

The Harwood Feffer LLP logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=454

Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Harwood Feffer LLP

CONTACT:  Harwood Feffer LLP
Attorneys:
Jeffrey M. Norton
jnorton@hfesq.com
Roy Shimon
rshimon@hfesq.com
877-935-7400
http://www.hfesq.com488 Madison Ave., 8th Floor
New York, NY 10022


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13 Responses to Class Action Filed Against Wells Fargo’s Loan Servicing Unit, America’s Servicing Company (ASC) for Deceptive Loan Modification Practices

  1. Phil Peters says:

    We would like to jion any class action law suits against Wells Fargo Bank since they forced us to do a short sal which has now ruined our credit and we did qualify for a loan modification but where denied since they told us the investor told them no but for no reson so thay have ruined our credit and it continues to be listed on our credit reoprts as settled in full which means we can’t get a moprtgage for 3 years.

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  2. SHEILA D. EVANS says:

    I would like to be parrt of the law suit against Wells Fargo/ASC. I have been trying to get a loan mod with wells fargo since Jan. 2010. It is now July, 2011 and I am going to court to try and and stop a motion to sale. I can not see how this company is still in business. By the way my hardship was due to my husband’s death in Dec. 2009.

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  3. Tammy Beck says:

    In 08 I was not bringing home a pay check

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  4. Tammy Beck says:

    In 08 I was not bringing home a pay check as I was a real estate agent, the economy was barely holding on and no one was buying houses. America Servicing Co was who I made my house payments to. I was struggling to pay bills and I called ASC asking for some options in helping me keep my home. They told me that since I had never missed a payment or paid late they could Not help me modify my home loan. Since they wouldnt help until I missed some payments, three to be exact, and I agreed to a short sale. I worked hard and got three offers on my house. I was able to pay off my mortgage in full! however it is 2011 and America Servicing Company is still reporting to Equifax I am seriously delinquent on my payments and continuing to ruin my credit. I only agrred to a short sale because I thought if I paid the loan in full ASC would not report anything on my credit. There is a class action lawsuit against ASC in California. My loan was in Texas and I hope to join this lawsuit but not sure if the attorney can help me being I in Texas.

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  5. Horace C. Jones says:

    I too would like to be part of this lawsuit. Currently,
    there is a sale date of our property 10/14/11. We want
    to stay in our home of 20 years. I am Vietnam Veteran.
    There is Mortgage Fraud involved in our loan regarding
    BNC Mortgage.(The Loan Originator) Our loan is currently under review by ASC/Wells Fargo for a loan modification. In the past, ASC/Wells Fargo has denied us for a loan Modification.
    I was advised by Real Estate Attorneys, yes there is loan violations involved. However, to pursue the case, they want me to pay $5,000.00. I need help, is there a cheaper way to go. Any help received would be highly appreciated.
    Thank You,
    Horace C. Jones.

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  6. Joe says:

    I am in need of help to save my parents house. They are both disabled and on disability. The first time they tried for a loan modification with wells fargo it was denied and I had to pay the money owed to them to stop the forclosure on their house. Then the second time Wells Fargo was going to forclose on their house they were forced into banruptcy. Now that they are behind again I am willing to help them and move my family in with them so they can have a home to spend the rest of their life in with not having Wells Fargo taking their home. The only problem is they are currenty two months behind in the mortgage and I do not want to move and the forclosure on the home not being able to be stopped. Is there any help out there.. Please

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  7. GLORIA FULLER says:

    We lost our home 2 years ago after giving america servicing co over $2000 to get us a modification. They said after to the modification they had made a mistake and the payment would be higher and tried to give us thier ins which was higher than we had been paying which we had insunce with escrow i want to be able to get in on the class action suit and need to know were to sign up

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  8. Dea Woodward says:

    I have been in search for a class action suit against American Servicing Company for several years. Currently I have been awaiting a loan modification since about July 2010 and have been going through so many situations with this company. Every time I look around they telling me I need to send in updated financial information that keeps expiring because of the amount of time it takes them to process. I have been floating in the wind wondering what is going on. While in the meantime, I am being charged fees stacked on top of fees. They send people out to my home (inspectors) which according to them it is to be sure that someone does reside at the residence yet I receive additional charges on my account. This has occurred at least once a month sometimes twice. Please help me!

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  9. Jessie B. Hayes says:

    I need help in filing a class action law suit against well Fargo (ASC). Like the others above, I have been waiting for a loan modification for more than a year. They keep requesting updated financial information that keeps expiring because of the time it takes for them to process. They sent people out to my house taking pictures, for about three month my house keep going up for auction. When the third party contact ASC/Wels Fargo, they would postpond the auction date, and the following month put it up again. To save my house from foreclosure, I just recently filed bankruptcy. However, I am still struggling to pay this mortgage. I need help in getting this mortgage interest rate to an affordable rate, in which, I am qualified. I have been wrongfully denied an affordable rate.

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  10. Deborah Goda says:

    Please help it just keeps getting worse!

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  11. Felicna Sanchez says:

    I would like to part of this ….I just got my house sold while in the middleof a loan modification

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  12. Sharon Brown says:

    I am still homeless after filing a 13 and then a 7 due to job loss and I would like some compensation for this. Help and the laws changed after the fact.

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  13. Jackie Whalen says:

    I went thru the modification dance in 2009 with Wells Fargo and every other month had to resend paperwork also to them because it had expired. After a year of this they sent a new payment for me to pay so I thought they was going to modify my loan. After making the lower payment for 4 months they sent me a denial letter on the modification wanting me to make my old payment plus all of the money that I shorted the 4 payments or they would foreclose on my house. If I had not had a 401 retirement account I would have lost my house at that time. I think this is how these banks have been doing to a lot of people and that is why we have had all of these foreclosures. No wander so many people stripped these houses when they foreclosed on them, they were mad. Any help would be appreciated thru a lawsuit to make these banks think twice before ripping so many people off.

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