Thursday, October 07, 2010

Wells Fargo Settles Pick-a-Payment Charges

Wells Fargo announced Wednesday that it had agreed to pay $24 million to end an investigation by eight states probing whether the company used deceptive tactics to sell "pick-a-payment" adjustable-rate mortgages without telling consumers the risks.

The $24 million will be used to help states assist customers who took out such loans. Wells Fargo also agreed to offer more than $770 million in its own loan assistance to borrowers.

The company signed agreements with attorneys general in Arizona, Colorado, Florida, Illinois, Nevada, New Jersey, Texas and Washington State.

Wells Fargo admitted no wrongdoing.

Source: The Associated Press, Alan Zibel (10/06/2010)

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