Ryder v. Wells Fargo Class Action Settles for $12 million
Keller Rohrback L.L.P. and its co-counsel recently came to an agreement with Wells Fargo Bank, N.A. to settle claims related to errors in the bank’s loan modification application process which prevented certain borrowers from properly receiving a loan modification between 2018 and 2019. Through this settlement roughly 1,830 class members will receive direct cash payments. No claim forms are required as the check will be issued directly to the class members. A copy of the settlement agreement may be found here.
We filed an Unopposed Motion for Preliminary Approval on August 2, 2021. A copy of the motion for preliminary approval may be viewed here.
Case Overview
More than 1,800 customers were reportedly wrongly denied a loan modification due to a Wells Fargo’s computer error.
Beginning in 2018 and well into 2019, Wells Fargo sent letters to its customers affected by this “glitch” apologizing for its “faulty calculation” that caused qualified borrowers to be denied a loan modification.
These qualified borrowers were part of the Home Affordable Modification Program (HAMP). A loan modification can help borrowers restructure their mortgages to make payments more affordable during financial hardship. Because of a glitch in Wells Fargo’s software program, hundreds of people were unable to modify their home loans, leaving many stuck in the financial situation that caused them to apply for the modification in the first place.
