Bank of America is facing a class-action suit from homeowners for allegedly attempting to force people into foreclosure, on purpose. The suit alleges that Bank of America employees were actually rewarded for finding ways to push homeowners into foreclosure.
Pro Publica has done an extensive investigation of the problem, and it’s really quite amazing. Apparently the controversy surrounding the administration’s HAMP problem whereby some homeowners could seek help getting their mortgages modified so that they could lower their monthly payments.
Homeowners were reportedly denied HAMP modifications en masse, while employees would create fictitious reasons for the denial. Pro Publica also reports that Bank of America employees were allegedly told to lie to customers about not having received their documents, in an effort to stall movement on the modifications.
Sadly this isn’t the first time we’ve read some bad news about Bank of America. They seem to be a recurring problem. Here’s some of our past coverage of them, for example:
- Bank of America customers were the least satisfied in a survey a few years back.
- Bank of America paid no US taxes in 2010, and even got a nearly $2bn rebate.
- Bank of America was fined by the SEC for $33m for “lying to investors” about bonuses
- Bank of America threatened homeowner with foreclosure months after they sold their house.
- Bank of America banned all payments to wikileaks in 2010.
- Bank of America moves jobs to the Philippines.
- Bank of America seizes wrong house.
- Bank of America seizes wrong house again.
- And who can forget Bank of America’s $5 debit card fee debacle?
Matt Taibbi says Bank of America is “too crooked to fail.” But can a bankster ever really be “too” crooked?