Wells Fargo to pay $81.6M to homeowners in bankruptcy
The Department of Justice said Thursday that the lender's failure to give borrowers timely notice of payment hikes or reductions violated a federal bankruptcy rule aimed at ensuring proper accounting of consumers' costs in bankruptcy.
Under the rule, which took effect in December of 2011, mortgage lenders are required to give borrowers in Chapter 13 bankruptcy 21 days' notice before making an adjustment to their monthly payment.
In addition to the payout, Wells Fargo agreed to improve its computer system and beef up employee training and oversight.