Since the U.S. financial system bailout in 2008, large banks have been under pressure to change their greedy, anti-consumer behavior. Unfortunately, even in the wake of apparent victories, huge financial institutions such as Bank of America and CitiMortgage continue to engage in oppressive, bullying tactics to enhance their bottom lines.
Last week, Bank of America announced an $8.5 billion settlement with investors aimed at resolving claims stemming from the bank’s shady mortgage-lending practices. That settlement could be in jeopardy – a group of investors known as Walnut Place have objected to the settlement and which to be excluded from the agreement. If successful, the excluded investors could file their own lawsuits against Bank of America.
Despite their sullied reputations, banking corporations are still taking advantage of their customers. A recently filed lawsuit alleges that banks, including Bank of America, are failing to live up to their promises following loan restructuring agreements. The suit claims that lenders will agree to lower payments with distressed customers, only to turn around and hit them with late fees and threats of foreclosure.
As consumers become ever-more frustrated by these large banks, perhaps we can expect to see more stories like that of Warren Nyerges and Maureen Collier. In 2009, the couple paid cash for a home in Florida, and never took a loan on the property. Incredibly, Bank of America began foreclosure proceedings, and the couple had to pay an attorney to defend them. Eventually, a judge ordered Bank of America to pay approximately $2,500 to cover their legal expenses. When the bank refused to pay despite repeated phone calls and letters, Nyergey and Collier foreclosed on Bank of America!
Banks have been intimidating and exploiting their customers for far too long. It is time for them to be held accountable for their practices.
