Class Action Claims Wells Fargo ‘Refuses’ to Correct Paid-Off Mortgage Obligation on Consumer’s Credit Report

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Wells Fargo Bank, N.A. is the defendant in a proposed class action lawsuit centered on the institution’s allegedly systematic issuance of erroneous credit reports containing monthly payment obligations on accounts that have been closed and paid in full. 

Filed in California’s Southern District, the lawsuit states that the plaintiff, a San Diego County resident, discovered in April 2019 that her TransUnion and Equifax credit reports noted a scheduled $897 monthly mortgage payment to Wells Fargo. According to the case, the plaintiff’s Wells Fargo home mortgage account was paid in full and closed as of February 2012.

While the plaintiff immediately disputed the Wells Fargo account information with TransUnion and Equifax, her credit report remains inaccurate due to the bank’s refusal to correct the scheduled payment listing, the lawsuit claims. This affects the plaintiff in that lenders take monthly payment obligations into account when deciding whether to extend credit, and financing may not be made available to those with too many monthly accounts, the case stresses. 

“By reporting continuing monthly payments as opposed to a $0 monthly payment, [Wells Fargo] misrepresents Plaintiff’s monthly financial obligations and gives the false impression that Plaintiff has less funds available to satisfy the new credit currently being applied for,” the complaint argues. “Defendant’s inaccurate and negative reporting damaged Plaintiff’s creditworthiness.” 

The lawsuit alleges violations of the federal Fair Credit Reporting Act (FCRA) and California’s Consumer Credit Reporting Agencies Act (CCCRAA), which impose duties on furnishers of credit reports in order to ensure accurate reporting.