Wells Fargo lesson: Think twice before signing on bottom line
Judge Trial Referee Richard M. Rittenband last week gave a justified rebuke to the Wells Fargo Bank for improper actions on its attempted foreclosure of a West Hartford home.
Rittenband stated that the bank’s “conduct in this case is contrary to the various federal laws designed to assist mortgagors harmed economically by the recession.”
The judge also required Wells Fargo to reimburse the homeowner for his legal fees defending the foreclosure.
Recently JPMorgan Chase, another major bank, announced it would discontinue lending to certain categories of business because of possible immoral situations that could occur in pawnbroking and pay-day lending. Both these categories affect our least-prosperous citizens. JPMorgan Chase itself has a long history of moral and legal problems with bank examiners.
When someone approaches one of these major banks for a loan or to open an account, the bank usually asks about the prospective borrower’s history. Obviously the bank would prefer not to lend to someone who has a history of criminality or a poor payment record. Unfortunately, one cannot question the bank’s history, as that is where the money is.
But in the Wells Fargo case, if this is any indication of how the bank treats its customers, one should be careful before signing the bank’s documents and feel free to walk away and find another lender when the bank tells the borrower, “Don’t worry about the documents; we will handle you properly because you are one of our customers.”
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