Wells Fargo Faces Class Action Over Foreclosures, Late Fees

Law360, Los Angeles (April 11, 2014, 10:35 PM EDT) -- Wells Fargo Bank NA violated California consumer laws by billing late fees to, or foreclosing on, state homeowners who had loan modification applications pending with the bank, according to a putative class action removed to California federal court Thursday.

The suit is among the latest based on the California Homeowner Bill of Rights, enacted Jan. 1, 2013. The law forbids banks from pursuing foreclosures while simultaneously processing loan modifications, a practice known as "dual tracking," and from charging late fees during the process.

“Because the dual-tracking...
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