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WEST VIRGINIA RECORD

Saturday, November 2, 2024

Woman sues Wells Fargo for misrepresentations in debt collection

Wellsfargo

HUNTINGTON – A woman is suing Wells Fargo Home Mortgage after she claims it made multiple misrepresentations in debt collection.

On March 31, 2006, Alyssa Russell entered into a loan agreement with Wells Fargo Home Mortgage Inc. with a principal amount of $73,800 and an adjustable interest rate payable over 30 years, according to a complaint filed in Mason Circuit Court and removed to federal court.

Russell claims in early 2015, she contacted the defendant about modifying the home mortgage loan and a representative of the defendant instructed her to not make payments on the mortgage while the modification was being processed and she relied on this representation during the loan modification process.

The plaintiff proceeded to provide the defendant with the necessary paperwork for loan modification assistance and in June, the defendant requested that she complete a new modification packet and resent certain documents, even though the packet and documents had previously been provided, according to the suit.

Russell claims she proceeded to provide the requested paperwork and documentation and in July, she began to receive debt collection calls from the defendant.

The plaintiff called the defendant and asked about the status of the loan modification and a representative of the defendant informed her that her mortgage account had been removed from the loan modification program and placed into foreclosure status, according to the suit.

Russell claims she contacted the representative who was handling her loan modification and asked why she had been removed from the loan modification process and the representative informed her that she should not have been removed from the program and that the representative would remove her mortgage account from foreclosure status.

The defendant failed to credit Russell’s payments to her account from July to October and also illegally charged late fees on four separate occasions between November 2012 and January 2014, according to the suit.

Russell is seeking actual and compensatory damages. She is being represented by Daniel T. Lattanzi of Pepper & Nason.

Wells Fargo is represented by Matthew D. Patterson and James H. Burns of Nelson Mullins Riley & Scarborough LLP.

The case is assigned to District Judge Robert C. Chambers.

U.S. District Court for the Southern District of West Virginia case number: 3:16-cv-00170

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