New York, NY (Law Firm Newswire) May 30, 2018 - On Friday, Manhattan-based consumer protection law firm Schlanger Law Group LLP, along with Seattle-based co-counsel Terrell Marshall Law Group PLLC, filed a class action complaint against Wells Fargo Bank, N.A. in the U.S. District Court for the Eastern District of New York. The complaint alleges that Wells Fargo misrepresented initial interest rates on residential real estate loans involving interest rate buydown agreements.
The complaint alleges that Wells Fargo’s actions violated the federal Truth in Lending Act (TILA) and New York General Business Law §349, and breached its contract with the named plaintiff, Alejandro Carrillo and hundreds or thousands of similarly-situated borrowers. The plaintiff asserts that these misstatements and inconsistencies not only result in borrowers paying more interest than they have been led to expect, but also make it very difficult for the typical borrower to understand the interest rate actually applied and recognize the violations.
Specifically, the complaint alleges that Wells Fargo:
* Based monthly payments on the agreed lower interest rate during the introductory period, but amortized loans at a higher rate of interest, resulting in higher-than-expected balances at the end of the initial period.
* Failed to adequately disclose that loans would be amortized at the higher interest rate during the initial period, and used misleading language in its Buydown Deposit Agreements.
* Misrepresented the source of funds used for the rate buydown, and combined these funds with other, unrelated funds in its Closing Disclosure, creating further confusion.
The case is Alejandro Carrillo v. Wells Fargo Bank, N.A.
For victims of deceptive mortgage lending practices, call 212-500-6114 or visit www.consumerprotection.net.
About Schlanger Law Group LLP
Schlanger Law Group LLP is a consumer protection law firm dedicated to protecting consumer rights through class action litigation and sophisticated, zealous advocacy under the Fair Debt Collection Practices Act (FDCPA), Fair Credit Reporting Act (FCRA), Truth in Lending Act (TILA), and other state and federal consumer financial protection statutes.