Wells Fargo Accused of Giving “Illusionary Loans” to Financially Stressed Family

A Missouri couple is taking Wells Fargo to court, attempting to recover money on behalf of all the folks out there who were duped into taking temporary loan modifications from the San Francisco-based bank.

According to a lawsuit filed in San Francisco this week, Vicki and Richard Sutcliffe claim Wells Fargo stepped in and offered them the option for a temporary loan modification after they fell behind on their mortgage payments. The couple accepted the offer and subsequently made the reduced payments as required. However, when the trial period was over, they received no paperwork from Wells Fargo informing them they were no longer on the reduced rate. Therefore, they continued to pay the lesser amount agreed upon during the trial period.

What the Sutcliffes did get was a letter informing them they had defaulted on their loan, and thus they were not going to permanently modify their loan.

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