On Tuesday, Wells Fargo bank admitted that it mistakenly foreclosed on 545 homes due to a calculation error. The homeowners in question had requested help with their mortgages, but due to improper use of foreclosure attorney fees, the vast majority of them were denied. By the bank’s own admission, this problem began back in 2010, and had remained unsolved until this past April.
Wells Fargo had announced some minor concerns on this issue back in August and were prepared to set aside funds to aid those affected, by Tuesday’s report revealed that the number of affected homeowners was substantially higher than initially calculated. This is the latest in a series of gaffs that has tarnished the bank’s reputation, including sham accounts set up without customer consent and illegally repossessing cars. The company has been attempting to reinvent its image for the last few months to restore its customers’ goodwill, but these incidents, along with this newest admission, has placed it in the ill will of many lawmakers, as well as the US federal reserve.
Wells Fargo has not yet made an official statement on how much money will be set aside to aid those whose homes were unnecessarily foreclosed.
