United States Bankruptcy Court for the Eastern District of Louisiana
391 B.R. 327 (2008)
Stewart (plaintiff) was an account holder at Wells Fargo. Stewart filed for bankruptcy. Wells Fargo filed creditor claims against Stewart’s bankruptcy estate. Stewart filed an objection to Wells Fargo’s proof of claims based on fees, charges, and costs against her account. Wells Fargo took many months and multiple hearings to reconcile and explain the details and relevant history of Stewart’s account. The account details eventually showed that Wells Fargo had charged Stewart many excessive and duplicative fees and costs, including charges for dozens of inspections and late fees applied while Stewart was making regular payments in bankruptcy. Many of the excessive fees were hidden and disguised as costs. Escrow-payment reconciliations were mostly incomprehensible and frequently incorrect, and as a result, Wells Fargo repeatedly demanded payments that were substantially wrong in Wells Fargo’s favor. Payments that Stewart made were applied to these excessive fees and costs before being applied to escrow, principal, or interest, in violation of the mortgage terms. Wells Fargo also claimed substantial legal fees and failed to post credits that should have been applied to the account.
Rule of Law
Holding and Reasoning (Magner, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 221,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,100 briefs, keyed to 189 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.