Class Action Roundup – June 23, 2017

Latest Wells Fargo Class Action Alleges Unauthorized Changes to Mortgages

In case you thought we’d gone just a bit too long without new legal action aimed at Wells Fargo, fear not. The New York Times reported on June 14 that the wounded bank is facing a new proposed class action alleging Wells Fargo mortgage officials implemented unauthorized changes to home loans held by customers in bankruptcy.

The improper loan updates, on their surface, usually lowered borrowers’ monthly payments, the article says. What was buried underneath the first couple pages of paperwork, The Times writes, is the allegedly unauthorized changes that would “extend the terms of borrowers’ loans by decades” and ultimately force borrowers to make monthly payments for far longer and owe more to Wells Fargo.

Wrapped tightly into this narrative are legal requirements for individuals in bankruptcy. According to The Times, changes to a payment plan for someone in bankruptcy must be approved by both a court and any other parties involved. The lawsuit claims Wells Fargo pushed through home loan changes without mandatory approval as part of a trial loan modification process. Unfortunately for some borrowers, Wells Fargo’s alleged back-end mortgage changes could put them at risk for defaulting on their court-sanctioned bankruptcy commitments, as well as make them vulnerable to foreclosure.

Writer Gretchen Morgenson has a complete write up of this latest Wells Fargo lawsuit over at The New York Times website.

Dad’s Class Action Argues JPMorgan Chase’s Paternity Leave Policy Is Discriminatory

Last year, JPMorgan Chase increased paid leave for primary caregivers from 12 weeks to 16 weeks. One of the bank’s fraud investigators, though, has filed a class action claiming what the bank has allegedly done for non-primary caregivers—that is, denying fathers paid paternal leave on the same plane as mothers—is discriminatory.

Business Insider writes that the plaintiff behind last week’s class action argues JPMorgan Chase unlawfully presumes fathers are non-primary caregivers. Further, the plaintiff reportedly learned of the bank’s stance on non-primary caregivers after seeking to take paternal leave only to be met with a demand to show proof that a “spouse or partner has returned to work” or is unable to care for the child for medical reasons.

“It was like something out of the 1950s,” the plaintiff said in a press release. “Just because I’m a father, not a mother, it shouldn’t prevent me from being the primary caregiver for my baby.”

The case, filed by The American Civil Liberties Union, the ACLU of Ohio, and an employment law firm, alleges violations of Title VII of the Civil Rights Act, as well as state employment laws.

Business Insider’s Rachel Gillett has further details.

$12B Class Action Only One of CenturyLink’s Recent Legal Problems

CenturyLink has had a rough go of it lately. After being hit last week with a whistleblower lawsuit claiming the company operates a sales-incentive scheme—and that the plaintiff was fired for attempting to air the company’s dirty laundry to its CEO—CenturyLink is now on the receiving end of a class action seeking $12 billion in damages stemming from an alleged high-pressure sales culture that saw cable customers shelling out millions for accounts and services they didn’t request.

But there’s more. This week, an Oregon woman filed another class action alleging CenturyLink overcharged her after salespeople knocked on her door offering cheap, ostensibly superfast internet service. It’s important to note that these three lawsuits come as CenturyLink is in the middle of a $34 billion merger with Level 3 Communications Inc.

Sounds a little similar to the Wells Fargo saga, doesn’t it?

Want to learn more about these lawsuits? Bloomberg’sPolly Mosendz, Ars Technica’sJon Brodkin, and OregonLive’sAnna Marum have you covered.

Speaking of Wells Fargo. . .

Wells Fargo Assures Settlement Will Take Care of All Affected by Unauthorized Accounts

The Los Angeles Times writes Wells Fargo, as part of a class action settlement, will guarantee customers affected by the bank’s unauthorized accounts scandal will be fully compensated for any fees or damage done to their credit scores. The assurance, which a judge made mandatory before signing off on the deal, could cause the bank to pay far more than the previously agreed to $142 million settlement sum.

To date, it is still unclear just how many customers were harmed by Wells Fargo’s phony accounts practice. According to the LA Times, attorneys estimate as many as 3.5 million bogus accounts were set up, way above the 2.1 million Wells Fargo reported to regulators last year.

Writer James Rufus Koren has everything you need to know.

Consumers Groups Seek Help in Tackling Navient’s “Harassing and Abusing” Phone Calls

The National Consumer Law Center and others have appealed to the Federal Communications Commission for help in dealing with student loan servicer Navient’s allegedly harassing and abusive phone tactics aimed at borrowers. The groups allege Navient calls borrowers’ cell phones multiple times per day and many times per week, totaling upward of hundreds of calls per year.

The groups allege Navient—which services loans for more than 12 million borrowers— consistently violates the federal Telephone Consumer Protection Act (TCPA) with its repeated robocalls. According to some complaints filed with the Consumer Financial Protection Bureau, Navient has called some borrowers “in excess of 12 times per day” and has even contacted co-workers, childhood friends, and spouses.

After you check out Ann Carrns’s write up for The New York Times, read more about the brewing legal storm against Navient here.