Daily Archives: September 18, 2013


Wells Fargo gets most Colorado complaints to feds

Wells Fargo gets most Colorado complaints to feds

Wells Fargo topped the list of banks that Colorado consumers have filed complaints about to the federal government’s new consumer bureau, according to a report released Tuesday, but it also has the most customers in the state.

The Consumer Financial Protection Bureauhas fielded 85 complaints from Coloradans about San Francisco-based Wells Fargo & Co. (NYSE: WFC) since the bureau began collecting complaint data in March 2012, according to “Big Banks, Big Complaints,” a report compiled by the Colorado Public Interest Research Group (CoPIRG).


Bank of America pushes to dismiss RICO lawsuit

Bank of America pushes to dismiss RICO lawsuit

Bank of America is seeking the dismissal of a federal lawsuit that accuses it of heading up a scheme involving home mortgage modifications.

This week, the Charlotte-based bank submitted its reply to the lawsuit, which was filed in July in Colorado, where co-defendant Urban Lending Solutions has operations. The suit accuses the bank and Urban of participating in a racketeering operation that wrongfully denied borrowers seeking modifications under the federal Home Affordable Modification Program.

According to the suit, Bank of America and Urban violated the federal Racketeer Influenced and Corrupt Organizations Act by operating “an association-in-fact enterprise designed to mislead and deceive borrowers through use of the United States mail and wires.” Urban is a contractor to whom the bank sent HAMP work. Bank of America, the lawsuit says, “acted as the kingpin of that enterprise.”


“Fixing cases:” U.S. subpoenas records of five Phila. judges

“Fixing cases:” U.S. subpoenas records of five Phila. judges

Federal prosecutors and FBI agents have subpoenaed financial information from five Philadelphia judges, sought campaign-donation records, and interviewed judges and political figures as part of a wide-ranging investigation over the last year, The Inquirer has learned.

Court officials and lawyers said they were unsure of the investigation’s focus. Two people said the FBI questioned them about what they called possible “fixing cases.” A third said agents asked about “pay-to-play,” the long-standing practice of campaign donors getting favors from public officials.

In an interview, Municipal Court Judge Joseph C. Waters Jr. said prosecutors subpoenaed his campaign-finance filings in August.

“My understanding is there’s certainly an investigation,” William Brennan, Waters’ lawyer, said. “My understanding further is that agents have spoken to a number of [Philadelphia court] employees, including judges and administrators. The focus, frankly, is unclear to me at this point.”


Plaintiff with $869K default judgment against Bank of America settles

Plaintiff with $869K default judgment against Bank of America settles

BECKLEY – Through a pair of settlements, Bank of America is rid of a plaintiff who obtained a default judgment of almost $900,000 against it.

Bank of America recently settled two lawsuits brought by Jason Prather, who sued the company in 2011 and 2013 over debt collection calls it allegedly made after being notified Prather was represented by counsel. Such calls are a violation of the West Virginia Consumer Credit and Protection Act.

Prather asked for and received default judgment in 2011 in the amount of $869,813.76, with $217,453.44 going to Prather’s attorneys.

Bank of America claimed it wasn’t properly noticed and the difference between Prather’s actual damages, which it said were $0, and awarded penalty was excessive when it asked Raleigh County Circuit Court Judge Robert A. Burnside, Jr., to alter or set aside the judgment.


CFPB Issues Exam Guide for Payday Loans to Military

CFPB Issues Exam Guide for Payday Loans to Military

WASHINGTON — The Consumer Financial Protection Bureau on Tuesday updated its exam manual for payday lenders to include how examiners will check for harm against military personnel.

The guide specifically helps identify potential violations in the Military Lending Act, which has stricter restrictions for short-term, small-dollar loans such as a 36% cap on the annual percentage rate. Though the rule is specifically to protect servicemembers, all payday lenders should take note as lawmakers are looking at this rule as the CFPB sets a federal framework in regulating all payday products.