Wells Fargo to pay $81.6 million in bankruptcy settlementStaff writer ▼ | November 6, 2015
Wells Fargo & Co., has agreed to pay $81.6 million to settle claims it failed to notify thousands of bankrupt homeowners that it was increasing their mortgage payments in violation of federal bankruptcy law.
Settlement Violating the federal bankruptcy law
The law at issue requires mortgage lenders to give people who have filed for protection under chapter 13 of the bankruptcy code 21 days’ notice before raising their mortgage payments.
Under chapter 13, a person can keep big assets such as a home or car while repaying their debts over a three- to five-year period. ■