Bank of America will pay 108 million in Countrywide Case

[Stuart G]

Source: NYTimes, AP

WASHINGTON (AP) — Bank of America will pay $108 million to settle federal charges that Countrywide Financial Corporation, which it acquired nearly two years ago, collected outsized fees from about 200,000 borrowers facing foreclosure.


The Federal Trade Commission announced the settlement Monday and said the money would be used to reimburse borrowers.

Bank of America purchased Countrywide in July 2008. FTC officials emphasized the actions in the case took place before the acquisition.

The bank said it agreed to the settlement “to avoid the expense and distraction associated with litigating the case,” which also resolves litigation by bankruptcy trustees. “The settlement allows us to put all of these matters behind us,” the company said.

Countrywide hit the borrowers who were behind on their mortgages with fees of several thousand dollars at times, the agency said. The fees were for services like property inspections and landscaping.

Countrywide created subsidiaries to hire vendors, which marked up the price for such services, the agency said. The company “earned substantial profits by funneling default-related services through subsidiaries that it created solely to generate revenue,” the agency said in a news release.



Read more: http://www.nytimes.com/2010/06/08/business/08ftc.html?hp

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These assholes went after those who were hurting the most...I wonder if the CEO of Countrywide is in jail??? :sarcasm:

[defendandprotect]

1. k

[louis-t]

2. They're also facing a suit re: private info that was lost

or stolen. If you have your identity stolen, you may get reimbursed.