>> Tammy says Wells Fargo enrolled them in a government program that protects people
who are financially hurt by COVID, putting a hold on their mortgage, but they don't need
the help. >> I have the ability to pay, I want to pay.
>> You specifically said to Wells Fargo, I don't need any help, I don't want any help.
>> Yes. >> Wells Fargo continues to do what Wells
Fargo has historically done, screw over their own customers. Screw over their own borrowers,
and they're doing it at a time when interest rates are at record lows. Where Americans,
understandably, are looking to refinance their mortgages and save potentially hundreds of
dollars every single month on the cost of housing.
But in order to do that, you need to have a clean credit record. And if you are in forbearance,
meaning if there is a suspension of your mortgage payments due to coronavirus, you ain't gonna
qualify for a refinance. And guess what? Right now there are various cases in 14 different
states indicating that Wells Fargo is placing borrowers in forbearance without their permission.
This is a huge problem and they should be called out for it. Again, when you're placed
in forbearance, as a borrower you're unlikely to be able to refinance. It is reported and
noted in your credit report, which is why it makes it so difficult to refinance. And
by the way, your bank should not volunteer you, or do things on your behalf without your
permission, and without the proper documentation and that is what's happening with Wells Fargo
right now.
Now let me give you some more details on what the forbearance program is, because the program
itself is important and it is helping a lot of Americans. But Wells Fargo is exploiting
it to prevent their own customers from refinancing and possibly taking their business elsewhere.
So to protect troubled borrowers from harm to their credit reports during the pandemic,
the CARES Act states that if a bank makes an accommodation to a customer, or consumer,
such as suspending mortgage payments it can't report a change in the borrower status such
as no longer being current on the loan.
But Wells Fargo is actually reporting the borrower's are in forbearance and that indicates
a major shift in their status, right? Raising questions about the practice. This goes against
what the CARES Act specifically says banks cannot do. Now last week NBC News reported
that there are borrowers who have been placed in chapter 13 bankruptcy, with Wells Fargo
placing them in forbearance without their permission, right?
So they're going through the bankruptcy proceedings, they do not want to be in forbearance and
Wells Fargo is placing them in forbearance anyway, further complicating their process
of bankruptcy. Borrowers in at least 14 states have said that they've been forced into forbearance
plans by Wells Fargo. That includes Alabama, Arizona, California, Florida, Kansas, Louisiana,
Michigan, Missouri, New Hampshire, New Jersey, New York, North Carolina, Texas, and Virginia.
Now why am I mentioning all of those states? Because this is not a mistake even though
Wells Fargo is trying to play this off is one. One of the spokespeople for Wells Fargo
said quote, in the spirit of providing assistance, we may have misinterpreted customer's intentions
in a small number of cases.
Except it's pretty hard to misinterpret intentions when there's no documentation indicating that
these borrowers actually wanted to be in forbearance. So I just wanna remind you all that Wells
Fargo has gotten into so much trouble before. Including signing their clients up for accounts
that they did not want, doing it without their permission or their knowledge.
And that led to a PR campaign that was laughable to say the least. Here's a little snippet
of that PR campaign. >> We know the value of trust. We were built
on it. Back when the country went west for gold. We were the ones who carried it back
East.
By steam, by horse, by Iron Horse. Over the years, we built on that trust. We always found
the way. Until we lost it. But that isn't where the story ends, where it starts again.
With a complete recommitment to you, fixing, >> Yeah, garbage. They've never been committed
to their customers.
They don't care about their customers. All they care about is their bottom line. The
right ad to put out, if they wanted to be honest was this one.
>> Hey, it's us Facebook, Wells Fargo, and Uber. Remember how you liked us before we
screwed you over? I mean, before you found out we screwed you over.
Yeah, ever since then it's been really hard for us. And even though we were penalized
millions, nay billions of dollars, we aren't done with our apology tour. Not because we're
sorry, but because we still like your money as much as we did before, and we want it back.
And we're spending millions of dollars on commercials during the NBA finals, because
we thought if it went us, LeBron, us, Kevin Durant, us, a pregnant lady, your uncle, our
CEO, closeups beautiful, diverse actors, then beer. Then maybe, just maybe, you'd end up
liking us as much as you like those other things.
Like some weird cornbread Ludovico technique. You don't know what a Ludovico technique is?
Never mind, It's nothing. But please don't close your eyes during In this.
>> Surge pricing is fine, surge pricing is fine.
>> Uber, Wells Fargo, and Facebook Like us, even a fraction of how much we like your money.
>> Cenk, nothing infuriates me more than people messing with individuals trying to make housing
a little more affordable for themselves and their families.
>> Well, that's true. >> It's infuriating.
>> Absolutely true, that nothing pisses you off more. Okay, so look, I'm gonna unabashedly
tell you about Aspiration.
So they're one of our sponsors. But really, you gotta get your money out of these dirty
banks like Wells Fargo. Having it in a clean place where you can have peace of mind. It
makes a giant difference. So they're not going to rip you off like this. They're a progressive
financial institution.
Aspiration.com/TYT. So in terms of Wells Fargo, look, if this is the first time you could
say, hey maybe it was a mistake and maybe the forbearance helps some people and clearly
it hurts others as Anna explained. But almost every time that these big banks, and big corporations
make a mistake it winds up helping them and not you.
That's a curious coincidence. And in this case, it will really hard to make that argument
for two reasons. One, this is exactly what Wells Fargo did before, signing up their clients
for something they didn't sign up for, so they could profit off of it, without their
permission. I mean, it's their MO, it's exactly what they do.
In fact for aspiration.com/TYT I say that that's a win win. And so sometimes I use that
as the word is interchangeable. I know how clunky it is, that's why it's slightly funny.
Anyway, in this case, Wells Fargo could mean, basically signing you up for things that you
didn't ask for that is going to hurt you.
>> Yep. >> So like if my wife signed me up for salsa
dancing lessons, she'd be Wells Fargo showing me.
>> You're the worst, you're just the worst. >> She would have actually helped you. You
guys would have fun. You would connect on a deeper level. You'd get some exercise which
would help with endorphins.
Anyway, fine, you're missing out. >> Okay, look, you're not going to Wells Fargo
me. I will not go to those Salsa classes. Okay, I got plenty-
>> I love how you compared what Wells Fargo is doing to Salsa classes
>> Yes, something equally painful. >> My.
>> Anyways, the second reason why Wells Fargo can't possibly be making a mistake here is,
there are no documents as Anna pointed out.
How do you put somebody in a program by accident, cuz if they checked off the wrong box and
a bunch of them did, 3% of the cases they checked off the wrong box, that's normal.
And I'd be like, hey, listen, guys, I know we're not fond of the big banks and stuff
like that, but let's be fair.
But here they didn't fill anything out, there was nothing wrong to check off. So they just,
and a lot of them magically moved into the forbearance column, which then prevents them
from moving their, refinancing their mortgage and remember, that's a two-fer. You're not
allowed to refinance at lower rates, and you can't move the money from the mortgage from
Wells Fargo.
>> Yep. >> So.
>> I'm so glad you mentioned that second part Cenk, because I forgot to. But yeah, this
is a way of preventing people from moving their loan from Wells Fargo to maybe a different
bank, maybe even a credit union that offers a lower interest rate.
So this is their way of ripping off their own customers, again, again, in the middle
of this pandemic.