In the News: Wells Fargo to pay $81.6M to homeowners in Chapter 13 Bankruptcy

Wells Fargo agreed to pay $81.6 million to settle claims that it failed to timely notify homeowners in Chapter 13 Bankruptcy of changes in mortgage payments.  Under bankruptcy law, mortgage lenders must give borrowers in Chapter 13 Bankruptcy at least 21 days notice of any increase or decrease of their mortgage payments.  Wells Fargo admitted to failing to timely file over 100,000 payment-change notices.  It also failed to meet the deadline to file over 18,000 escrow analyses.  The violation affected about 68,000 accounts of homeowners between December 1, 2011 to March 31, 2015. (Source: Associated Press cited in Sacramento Bee on November 5, 2015 in Sacramento, California.)