Wells Fargo Settles Pick-A-Payment Suit For $50M

Law360, New York (December 15, 2010, 2:34 PM EST) -- Wells Fargo & Co. has agreed to pay $50 million to settle a class action claiming that so-called pick-a-payment home loans offered by its Wachovia unit violated the Truth In Lending Act.

The plaintiffs filed a motion Friday in the U.S. District Court for the Northern District of California seeking conditional certification of the class and approval of the settlement.

Pick-a-payment loans allow borrowers to make payments that are less than the interest due. The suit, filed in 2007, alleged that the loans were unlawfully deceptive...
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