Facts

McLaughlin filed a class action against Wells Fargo Bank NA dba Wells Fargo Home Mortgage under the Truth in Lending Act.

PLAINTIFF'S CONTENTIONS:
Wells Fargo allegedly failed to provide an accurate statement of the total outstanding balance that would be required to pay the consumer's obligation in full as of a specific date, based on the "best information available," as required by TILA. Wells Fargo allegedly failed to comply with TILA by failing to include insurance proceeds held by Wells Fargo in restricted escrow accounts.

Plaintiff asserted a cause of action for violation of TILA and Regulation Z.

DEFENDANT'S CONTENTIONS:
Wells Fargo denied any wrongdoing.

Result

There is a Damages Class and a Declaratory Relief Class. The parties' settlement provides a cash payment to eligible class members, who are borrowers with mortgages serviced and owned by Wells Fargo who, between June 23, 2014 and June 23, 2015, received payoff statement that did not disclose property insurance claim funds. Wells Fargo also agreed to modify its template payoff statement letter regarding property insurance funds. Class members in both classes have already been mailed notice of the settlement.

Other Information

FILING DATE: June 23, 2015.