Friday, December 20, 2013

Wells Fargo 'Returns' Money It Disputes It Ever Took

By Michael Fuller, Underdog Lawyer

Today, Wells Fargo 'returned' $197.17 to a consumer that it maintains it never took in the first place.

See Prior Post: Wells Fargo Ordered to Appear on Contempt Charges

See Original Post: Wells Fargo Prosecuted in Payday Loan Scheme

See Update: Wells Fargo Pays Over $35,000 to Settle Contempt Charges

Contempt Order to Show Cause

In November, Hillsboro consumer Antonio Espinosa filed a motion alleging Wells Fargo broke the bankruptcy rules when it seized wages from his account to pay debts he incurred before his case was filed.

Wells Fargo Charges 75% Interest; Only Pays 30%

The bank's decision comes after a federal judge ordered it to show cause why it shouldn't be held in contempt for alleged collection efforts it took back in May.

Wells Fargo also returned an additional $38.24 to Espinosa, which it claims represents 30% interest on the wages he claims it seized.

Bank records indicate Wells Fargo charged Espinosa over 75% APR when it loaned him money through its "Direct Deposit Advance" program earlier in the year.

Wells Fargo's History of Contempt

Wells Fargo was previously held in contempt by a Portland bankruptcy judge after a trial in October 2012. 

The bank was held liable for harassing a consumer with over one hundred phone calls after bankruptcy.

After Wells Fargo lost on appeal, it paid $37,500 to settle.

[Portland Bankruptcy Court Case Number 13-32954-elp7; 13-03295-elp]

No comments:

Post a Comment