Bank Could Be Overcharging Fees

LOS ANGELES – (October 7, 2011) – Baron and Budd, P.C. is investigating a mortgage scheme that banks may be using to take advantage of consumers. Baron and Budd has determined that the mortgage-lending arm of Wells Fargo may be charging inappropriate fees to clients who are more than 20 days late, a period termed "in default," on their mortgage payments. The policy appears to be upheld even if the customer gets caught up and makes payments on time. These fees are typically added to a homeowner’s loan balance or otherwise charged to them without the homeowner’s knowledge or consent.

"Sadly, this is yet another deceptive practice that banks have developed to make money from consumers," said Roland Tellis, head of Baron and Budd’s consumer fraud litigation team. "These banks are taking advantage of homeowners when they’re down, and most homeowners don’t even know that this is happening."

As a law firm dedicated to pursuing cutting-edge work that protects consumers, Baron and Budd is proud to be on the front lines of new litigation that defends consumers from predatory financial practices. Though Baron and Budd began as an asbestos firm, the firm has diversified into other meaningful litigation areas to better pursue its mission of "Protecting What’s Right" for consumers. Recently, the firm served on the Plaintiffs’ Steering Committee (PSC) in the bank overdraft fee litigation, and participated in the negotiations for a $410 million settlement with banking giant Bank of America — a settlement that not only helped compensate consumers who had been victims of the bank’s deceptive practices, but helped change bank overdraft policies at several key institutions. The firm is also pursuing litigation against J.P. Morgan Chase and other financial institutions for various mortgage issues.

If you are a California homeowner who was behind on mortgage payments, but has since gotten back on track, you may have been overcharged on fees. Contact Baron and Budd at 1.866.656.2425 or email us at info@baronbudd.com for a free consultation.