Roger A. Meyman and Kari L. Pickering have filed a class action lawsuit against Wells Fargo Bank, Wells Fargo Home Mortgage, LLC, and Wells Fargo Home Mortgage, Inc, claiming Wells Fargo improperly charged the plaintiffs for certain attorney fees related to personal bankruptcy proceedings.
The suit seeks to represent all persons in Minnesota who took out a mortgage loan with Wells Fargo Bank and were charged attorney fees without being first asked to repay the balance of the loan in full.
The suit accuses Wells Fargo bank of Unjust Enrichment and breach of contract.
The agreement between Wells Fargo and the plaintiffs allows Wells Fargo, the Note holder, to be paid back in full for expenses incurred while enforcing the note if the Note holder has demanded payment immediately in full. The suit alleges that as the plaintiffs were not asked by Wells Fargo to pay off their Notes in full, they cannot be charged for the attorney fees.
In Feb 2003, Roger Meyman entered into a residential mortgage loan originated by Wells Fargo Home Mortgage. The loan was transferred to Wells Fargo Bank, and soon afterwards Meyman defaulted on loan payments and filed for Chapter 7 Bankruptcy.
In June 2010, Wells Fargo filed a motion to lift stay, which was granted in July of the same year. Without lifting the bankruptcy stay, Wells Fargo would have been prevented from taking any action to collect from Meyman. The order to lift stay did not address the issue of attorney fees.
Afterwards, Wells Fargo Bank demanded Meyman make payments necessary to bring the mortgage current. Meyman was also charged $550 in attorney fees. The suit argues Wells Fargo did not demand Meyman pay off the mortgage in full. Therefore, they did not satisfy the requirement that would have held Meyman responsible for the attorney fees.
The suit claims the attorney fees charged to the plaintiffs were unlawful and excessive and benefit Wells Fargo and Wells Fargo Home Mortgage. It asks for Wells Fargo to compensate plaintiffs for these fees, interest, and attorney costs.