Unfortunately, it appears that the overall articles fails to determine why the USTP reduced the settlement to less than 5% of the original amount. “Wells Fargo previously agreed to pay about $81.6 million in remediation”
Probably because the the trustees can’t take a cut – as they get paid first out of any bankruptcy proceeding with administrative costs. Likely, a settlement like this may not fall in the category…or if it does won’t be much availability for 8000 victims ($437.50).
Aug. 26 — The U.S. Trustee Program announced Aug. 25 that it has reached an agreement with Wells Fargo Bank, N.A. requiring the bank to pay close to $3.5 million in remediation on account of 8,000 homeowners in Chapter 13 bankruptcy.
Wells Fargo and the USTP filed an amendment to a prior settlement entered in a Maryland Chapter 13 bankruptcy case on Nov. 19, 2015 (In re Green, Bankr. D. Md., No. 11-33377-TJC, 8/25/16 ), according to a press release sent to Bloomberg BNA.
The amendment is the result of an independent reviewer’s oversight of Wells Fargo practices with regard to filing and serving payment change notices in active Chapter 13 cases, and increase payments to be made by the bank by approximately $3.5 million. Wells Fargo previously agreed to pay about $81.6 million in remediation for “its repeated failure to provide homeowners with payment change notices (PCNs) as…
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