Well(here we go again)s Fargo

In case you missed it, Wells Fargo was recently fined several hundred million dollars by the CFPB for more deceptive behavior. In 2016, you may remember that the financial institution faced big fines for stealing from customers. Now it’s being accused of mortgage and insurance abuses as well.

The problem for victims of the latest scam is that you may not realize you’ve been mistreated. If you’re a Wells accountholder, here are some red flags that could spell trouble:

Your mortgage payments dropped, but the loan grew 

Allegedly, Wells Fargo made unauthorized changes to certain mortgage accounts. The bank lowered borrowers’ monthly payments but extended the terms of the loans (in some cases for decades).

BALANCE tip: make sure you review the terms of your Wells Fargo mortgage. Were they changed without your knowledge? 

You bought auto insurance you didn’t actually need
Did a Wells Fargo employee talk you into buying auto insurance? You may have spent unnecessary dollars. According to the CFPB, employees forced more than half a million drivers to buy coverage they didn’t need. The insurance costs are believed to have lead in part to loan defaults and vehicle repossessions by 20,000 customers.

BALANCE tip: explore possible legal solutions. The National Association of Consumer Advocates may be able to help, as might your attorney general, especially if you never received the insurance refund you deserved.

 

 

Damaged credit
If you accrued debt as a result of your bigger insurance costs, or if your car was repossessed, your credit likely took a hit. It’s a good idea to check your credit regularly anyway, but if you’re a victim, it’s more urgent now than ever. Consumers who know they were scammed by Wells Fargo can initiate disputes with the three credit-reporting agencies (just make sure you have documentation to prove your innocence).

Lastly, BALANCE was designated by the City Treasurer of San Francisco to help local residents during Wells Fargo’s accounts scandal in 2016, and we’re ready to help again, no matter where you live. If you think you’ve been affected, contact one of our Certified Financial Coaches immediately.

 

Article courtesy of our partners at Balance