Gibbs Law Group Wells Fargo Mortgage Modification Lawsuit Featured on CNN
On December 12, 2018, CNN Business published a story entitled “‘I begged them for help’: Wells Fargo Foreclosure Nightmare” featuring our clients, Jeff and Eva Reiner detailing their story about being incorrectly turned down for a mortgage modification because of a Wells Fargo software glitch. As CNN reports, after the bank didn’t extend the Reiners a modification, Wells Fargo foreclosed on the Reiners’ home in rural South Carolina.
The Reiners told CNN that they suffered a string of consequences from the denial of the modification and losing their home: they had to give up pets and furniture, uproot their son from his friends, and ultimately file bankruptcy. According to the article, “Wells Fargo did not accept their requests for a mortgage modification for their beloved 6-acre property in rural South Carolina. Wells Fargo eventually foreclosed on the home, forcing the couple to move their teenage son, give up three dogs and forfeit the equity they had built up in the house.”
Many years later, Wells Fargo sent the Reiners a letter informing them that the bank had “made a mistake.” The bank informed the Reiners that when it reviewed their request for a loan modification seven years earlier, it should have approved their request. Because the bank had incorrectly declined to offer a modification, the letter said, Wells Fargo would provide them with “a check for $15,000 to help ‘make things right,’” CNN reports. Wells Fargo sent the check as part of its remediation program, which includes Wells Fargo computer glitch compensation.
CNN notes that Jeff Reiner reacted to Wells Fargo’s apology and $15,000 check by stating, “It doesn’t even begin to compare to the chain of events that were started by their denial of assistance.” He further commented on Wells Fargo’s explanation that the modification denial was caused by a software error, “Where was the human oversight?”
The article also details our firm’s Wells Fargo class action lawsuit, which was recently filed in federal court on behalf of those borrowers who, like Jeff and Eva Reiner, were wrongfully denied mortgage modifications due to Wells Fargo’s alleged “software error.” According to Wells Fargo’s public filings, approximately 870 customers were incorrectly denied a mortgage modification due to a glitch in Wells Fargo’s mortgage modification software.
Gibbs Law Group partner Michael Schrag is quoted in the article saying of Wells Fargo’s conduct, “We think Wells Fargo’s errors are having devastating and long-lasting effects on people’s lives.”
Borrowers who believe they were wrongfully denied loan modifications by Wells Fargo between 2010 and 2018 and would like to learn more about their legal rights in the Wells Fargo Mortgage Modification Lawsuit may contact us through our website, or call us at 1-866-699-4340.
About Our Consumer Protection Practice
For nearly 30 years, our consumer protection attorneys have challenged unfair business practices that erode consumers’ confidence and compromise their rights. We have recovered over a billion dollars for clients in high-stakes litigation against the world’s largest corporations, earning some of the largest consumer settlements of all time and establishing our reputation as a skilled and trusted advocate for consumers. Our attorneys have received numerous honors for their work, including “Top Plaintiff Lawyers in California,” “Top Class Action Attorneys Under 40,” “Consumer Protection MVP,” and “Best Lawyers in America.”
Gibbs Law Group is a California-based law firm committed to protecting the rights of clients nationwide who have been harmed by corporate misconduct. We represent individuals, whistleblowers, employees, and small businesses across the U.S. against the world’s largest corporations. Our award-winning lawyers have achieved landmark recoveries and over a billion dollars for our clients in high-stakes class action and individual cases involving consumer protection, data breach, digital privacy, and federal and California employment lawsuits. Our attorneys have received numerous honors for their work, including “Top Plaintiff Lawyers in California,” “Top Class Action Attorneys Under 40,” “Consumer Protection MVP,” “Best Lawyers in America,” and “Top Cybersecurity/ Privacy Attorneys Under 40.”