Hundreds of Wells Fargo customers forced out of their homes due to computer glitch

Hundreds of Wells Fargo customers forced out of their homes due to computer glitch

Hundreds of Wells Fargo customers lost their homes because of a computer glitch which denied creditors at risk of foreclosure modifications to their loan terms.

In an SEC filing posted last week, the bank revealed that the coding error hit struggling customers over a five-year period between April 13, 2010, and October 20, 2015.

"This error in the modification tool caused an automated miscalculation of attorneys’ fees that were included for purposes of determining whether a customer qualified for a mortgage loan modification," says the bank. "As a result of this error, approximately 625 customers were incorrectly denied a loan modification or were not offered a modification in cases where they would have otherwise qualified."

Wells Fargo says 400 customers subsequently lost their homes as the bank foreclosed on the loans.

The bank says it has set aside $8 million to compensate customers forced out of their homes.

Comments: (2)

Melvin Haskins
Melvin Haskins - Haston International Limited - 06 August, 2018, 12:191 like 1 like

There is no mention of why it lasted so long, nor why it took so long to discover. It is no use blaming the coding error. It is up to human intervention to pick up the problems.

Jim Wells
Jim Wells - Wellspring Consulting International - Fort Lauderdale 06 August, 2018, 14:14Be the first to give this comment the thumbs up 0 likes

If US bank regulators were really doing their jobs, one might expect them to revoke government deposit insurance to protect Americans from this rogue bank that continues to victimize its customers in multiple ways.

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