Hagens Berman Sobol Shapiro Investigations

Wells Fargo Bi-Weekly Mortgage Payment Plan

Date Started: December 15, 2009

Hagens Berman is investigating allegations of deceptive conduct by Wells Fargo Home Mortgage (d.b.a. America's Servicing Company) in its marketing practices and use of bi-weekly mortgage payment programs.

Wells Fargo offers a program in which borrowers automatically pay one-half of their mortgage payment every two weeks rather than a full payment each month. Borrowers have indicated that Wells Fargo encourages them to enroll in this program suggesting that borrowers will save on interest each month by paying half their mortgage payment in advance. In actual practice however, Wells Fargo holds the earlier payment, only credits payment at the end of the month, and does not reduce the amount of interest due. By enrolling in this program, borrowers pay early but obtain no benefit.

If you enrolled in Wells Fargo's bi-weekly mortgage payment program under the belief that it would reduce the amount on which you owed interest each month, please contact us clicking here.