Wells Fargo has a long history of mistakes when it comes to overcharging their customers and signing them up for financial products that they didn’t want or need. The biggest of these mistakes came when the bank had to admit that many of its employees, in the pursuit of trying to meet impossible sales goals, had opened up millions of bank accounts and credit card accounts in its customers’ names, all without actually telling those customers. Wells Fargo has also charged their customers for unneeded car insurance, and in some of those cases, customers had their cars repossessed. But that’s not all. Wells Fargo also charged the wrong fees when it came to mortgages, and added on charges for pet insurance, without fulling explaining to these customers what they were buying. Just last month, Wells Fargo had to pay $65 million dollars in penalties to investors who they had hidden company policy from.
This week, Wells Fargo has said that they have identified at least 145 more customers who had their homes foreclosed on all due to a computer glitch. In August, Wells Fargo admitted that they had found what they called a “calculation error” in their mortgage modification tool. After an expanded review, they had said that they have found other errors, which seem to be responsible for inflating the estimates of attorney’s fee that were calculated during the foreclosure process. These fees help the bank decide if a customer is qualified for repayment plans or mortgage modification.
Overall, a total of 545 homeowners have had to face foreclosure of their homes because of these calculation errors. Instead of qualifying for the load medication they were due, they lost their homes instead. Wells Fargo said that this error applied to foreclosures that took place between March and April of this year, and that they have corrected the errors in their modification tool.
Wells Fargo has apologized, and a spokesman stated, “We’re very sorry these errors occurred.” They have said that they are working on contacting the affected customers in order to fix those accounts as well as offering independent mediation. Wells Fargo has set aside $8 million dollars to help compensate these customers.
A financial reform group, Americans for Financial Reform, has implored Wells Fargo to setup a complete review that would identify all homeowners who lost their houses due to this error and make sure that they are well compensated.