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The
unit, called Wells Fargo Bank NA, agreed on the sum in a pact
with the Department of Justice's U.S. Trustee Program, which
oversees the country's bankruptcy system, according to a letter
from the bank filed in U.S. Bankruptcy Court in Greenbelt,
Maryland.
Wells Fargo agreed to fix the mailing error and give credits and
refunds worth $3.45 million to affected homeowners.
Inquiries by an independent compliance monitor hired by the bank
as part of an $81.6 million settlement with the Justice
Department last year uncovered the problem, said Cliff White,
director of the U.S. Trustee Program's executive office, in a
statement. [L1N13025Y]
In that agreement last year, Wells Fargo settled claims that it
denied thousands of homeowners a chance to challenge mortgage
payment increases imposed during their bankruptcy proceedings.
The latest $3.45 million deal reached with Wells Fargo
supplements that settlement, the U.S. Trustee Program said. The
bank also has agreed to expanded compliance monitoring.
A Wells Fargo spokesman said it self-reported the mailing delay
to the U.S. Trustee Program upon learning of the problem and
that it is providing timely delivery of documents.
(Reporting by Suzanne Barlyn; Editing by Bill Rigby)
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