Computer issues have become all too common in the world of banking these days. In some cases, issues like these can be quite catastrophic. For hundreds of Wells Fargo customers, the situation has become extremely dire. These clients have lost their home because a computer glitch denied creditors modifications to their loan terms.
Wells Fargo has one of the most robust computer systems in the world. It is a top priority when operating a multi-billion dollar bank in this day and age. Unfortunately, even that system can run into issues with widespread consequences. For hundreds of customers, a computer glitch has literally cost them their homes. This is all the result of a computer glitch occurring between 2010 and 2015.
Wells Fargo Computer Glitch
Because of this issue, creditors at risk of foreclosure were unable to receive modifications to their loan terms. Around 400 customers have lost their homes due to this computer glitch. The bank was forced to foreclose on the loans because the information staffers received showed owners had to be evicted. Clients will, finally, be compensated, as the firm has set aside $8m to help the affected clients.
Wells Fargo comments on this glitch by adding:
“This error in the modification tool caused an automated miscalculation of attorneys’ fees that were included for purposes of determining whether a customer qualified for a mortgage loan modification. As a result of this error, approximately 625 customers were incorrectly denied a loan modification or were not offered a modification in cases where they would have otherwise qualified.”
Why such incidents can go by unnoticed for over five years, baffles everyone. A glitch on this scale should have been discovered earlier, yet the bank failed to notice anything out of the ordinary. Recompensing users with $8m spread across 400 victims will not be sufficient to give people their homes back.