Wells Fargo Charging Attorney Fees, Late Fees -- while in 13?

[paresident13]

I am having problems with Wells Fargo charging attorney fees, late fees, etc. while in Chapter 13. I have not missed any payments to the trustee and the filing has not been in "default". So my question, has anyone completed a Chap 13 and the mortgage lender cleared any funds in holding? For me the amount is greater than $4K. ouch!

[rrockinggramma]

demand an audit of your account from wells fargo. Mortgage lenders are notorious for this stuff!!!!

[lrprn]

I am having problems with Wells Fargo charging attorney fees, late fees, etc. while in Chapter 13. I have not missed any payments to the trustee and the filing has not been in "default".

Does your lawyer know about this?

If you truly have not missed any mortgage payments after filing and have made every payment by your actual due date (not the grace period), then this is a direct violation of your automatic stay protection. If your lawyer isn't involved yet, he/she needs to be, and now isn't soon enough.

Did Wells Fargo ever file an objection to your plan before you were confirmed?

[StartingOver08]

Your plight is apparently getting notice from the UST. The servicers have been taking advantage of the Ch 13 status all over the country to ply extra money out of the debtor. Remember, the servicer makes this money and does not pass it along to the lender (the fees). So these servicers love people in default, or in foreclosure or in bankruptcy because they pile on the fees.

Here is an article where Wells might have to pay a fine for piling on the fees to another Ch 13 debtor. There is a recent case too where Wells was caught doing the same thing and paid a fine. In fact, Wells Fargo has been caught several times but it does not stop them from charging these fees because they make more money by charging the fees and paying the fines then by stopping the fees!

Here is one article: http://www.totalbankruptcy.com/overv...gage/fees.aspx

Here is another article: http://www.floridabankruptcyblog.com...22040652.shtml

Here is another article: http://www.nytimes.com/2007/11/06/bu...ed=1&th&emc=th


Here is a summary of the case (in English, not legalize!): http://www.duanemorris.com/articles/article2974.html

[paresident13]

More history about my Chap13

My Ch13 was confirmed October 2005; WF did not submit any objections prior to confirmation. My WF payment was paid directly from the Western PA Trustee. My payments were made to the trustee and then it was at the discretion of the trustee to pay the debtors how much and when.

Year 1 goes by without any issues -- Aug 2006 the was a general hearing and filing of paperwork that needed to be made by my attorney. Attorney claims paperwork is filed on time but clerk did not process. Who knows what actually occurred. My case falls out of Chap13 for a period of 10 days. The paperwork is submitted and we are on track again. -- Still no payments missed to trustee. During that 10 days, WF enforces a foreclosure processing in the court and we are served papers, however everything is resolved in 10 days and back on track.

Year 2, I am reviewing my payments and notice that WF has not been paid enough and there is an balance in my account. I involve the attorney and trustee and request payments be made. Im told you do not have the authority to request who and when gets paid. I provide a statement of my account from WF and a statement from trustee and there is $10,700 discrepancy.

Year 2.5 (June 2008), there is a review of my account and letters sent to all creditors. The discrepancy comes up again between WF and my account. The outstanding $10,700 is found -- a check was sent directly to WF Financial not WF Mortgage. Trustee requests an audit of my WF account from WF, and does not receive response.

Year 3.5 (Feb 2009), missing check is received by trustee and applied to my account. Unfortunately, they do not apply all money received -- $4,000 is assessed to late fees, attorney fees, etc. I ask WHY!

June 2009 -- Trustee completes final accounting of my account and moves status to COMPLETE. I ask attorney to get an audit from WF in June -- WF has not responded as of Aug 3. I have been told that when the discharge is final, WF will reapply all funds that have been set aside in late fees, attorney fees, to my mortgage payment. I'm a bit skeptical this will occur!

Thanks for sending me the links to other similar situations. That will help support my account with WF.