Acorn, a national advocacy group for low-income people, alleged in a lawsuit filed in San Francisco Superior Court that Wells Fargo’s financial unit has violated California’s unfair business competition law by misleading borrowers on loan terms and conditions.

The complaint accuses Wells Fargo of soliciting homeowners to refinance debt on more favourable terms but then producing loan documents with more costly terms, including higher fees and interest rates at loan closing.

The suit also alleges the bank did not tell borrowers with good credit records they could qualify for loans on better terms than those offered by Wells Fargo Financial.

Please login to view whole article - or subscribe here.
For a free two week trial to Ethical Corporation online, please click here.