Complaints of Unauthorized American Home Shield Charges Through Wells Fargo Mortgages Could Draw Scrutiny from Policymakers

Regulatory Update

As part of our ongoing investigation into American Home Shield (AHS), we have reviewed a number of consumer complaints, received through a FOIA request, that claim Wells Fargo added unauthorized charges for AHS home warranties to customers’ Wells Fargo mortgage statements.

In addition to potentially providing another avenue of scrutiny for Wells Fargo, legal experts we spoke with said the complaints could expose AHS to “joint and independent” legal scrutiny from state and federal regulators, litigators, and other entities pursuing action against Wells Fargo for similar sales practice issues.

Unauthorized charges. In response to a FOIA request, the FTC provided us with 32 complaintsfiled in its Consumer Sentinel Network between January 1, 2009 and December 31, 2012.

Several of the complaints relate to unauthorized monthly charges for AHS home warranties Wells Fargo included on customers’ mortgages. Public complaints posted online as early as 2009 and as late as September of 2013 echo those found in the FTC’s database.

The complaints we reviewed claim Wells Fargo tacked unauthorized charges for AHS home warranties as an “optional product” on customers’ Wells Fargo mortgage statements. Those optional product charges ranged from $33 to $69.11 per month.

Read on.

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One response to “Complaints of Unauthorized American Home Shield Charges Through Wells Fargo Mortgages Could Draw Scrutiny from Policymakers

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