Wells Fargo to Refund Fees Charged for Delays That Were Primarily Bank’s Own Fault
Wells Fargo & Co. said Wednesday that it will refund a swath of mortgage rate lock extension fees assessed during a time when the bank charged those fees to some customers for delays that were primarily the bank’s own fault.
As it looks to win back trust after a scandal over its sales practices, the San Francisco bank said it will reach out to customers who paid rate lock extension fees requested from Sept. 16, 2013, through Feb. 28, 2017, and refund the customers who don’t think they should have paid.
The San Francisco bank said that approximately $98 million in rate lock extension fees were assessed to about 110,000 borrowers during that period, but it thinks a substantial number of the fees were appropriately charged under its policy. The bank said the amount to be refunded probably will be lower, as not all of the fees assessed were actually paid and some fees already have been refunded.
An internal review “determined a rate lock extension policy implemented in September 2013 was, at times, not consistently applied, resulting in some borrowers being charged fees in cases where the company was primarily responsible for the delays that made the extensions necessary,” the bank said in a statement.
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