NEW YORK, Nov. 23, 2010 (GLOBE NEWSWIRE) -- The law firm of Harwood Feffer LLP () today announced that it filed a class action lawsuit against Wells Fargo Bank, N.A. (NYSE:WFC), and its loan servicing division, America's Servicing Company ("ASC"), for fraudulent and deceptive practices related to loan modifications.
The lawsuit, filed in the United States District Court for the Northern District of California, Forster, et al. v. Wells Fargo, et al., Index. No. [pending assignment], alleges that ASC improperly and unlawfully induced borrowers to default on their mortgages by informing borrowers that loan modifications would not be considered for those individuals who were current on their payments. By making loan default a pre-requisite for modification, without regard to whether a borrower otherwise qualified for a modification due to financial hardship, or ASC caused borrowers to unnecessarily suffer ruined credit and subjected them to significant fees, penalties and interest.
ASC is a loan servicer, meaning it does not have a beneficial interest in the mortgage loans it oversees but rather is contracted to administer and enforce the terms of the mortgage agreement. As a loan servicer, ASC generates a significant portion of its revenue from fees, penalties, and interest collected on the non-performing loans it services. Consequently, it is in ASC's financial interest to avoid, delay, and deny loan modifications and to pursue foreclosures because doing so will lead to increased revenue.
A copy of the complaint is available on the firm's website () or can be obtained by contacting the firm. If you believe you were a victim of ASC's mortgage loan modification scheme (meaning you went into default based on ASC's representation that you would not qualify for a loan modification otherwise), you may be part of the proposed class. For more information on this case, you may contact Jeffrey M. Norton ( jnorton@hfesq.com ) or Roy Shimon ( rshimon@hfesq.com ) via email or toll free at (877) 935-7400.
For over two decades, Harwood Feffer has been a nationally recognized firm that specializes in complex, multi-party litigation with an emphasis on securities, ERISA, consumer fraud, products liability and civil rights litigation. Harwood Feffer serves as lead counsel in numerous class actions on behalf of investors, employees, and consumers and has recovered hundreds of millions of dollars in recoveries for its clients.
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CONTACT: Harwood Feffer LLP Attorneys: Jeffrey M. Norton jnorton@hfesq.com Roy Shimon rshimon@hfesq.com 877-935-7400 http://www.hfesq.com 488 Madison Ave., 8th Floor New York, NY 10022