A class action lawsuit has been filed against Bank of America for taking $25 billion in federal TARP bailout money but intentionally failing to live up to its part of the bargain. The deal was that banks were supposed to use use the money to allow struggling homeowners to reduce their payments to affordable levels. “Bank of America came up with every excuse to defer the Kahlo family from a home loan modification, from stating they ‘lost’ their paperwork to saying they never approved the new terms of the mortgage agreement,” said the plaintiff’s attorney. “And we know from our investigation this isn’t an isolated incident.” Bank of America declined to comment.
Washington homeowners file class action against Bank of America [Seattle PI] (Thanks to Ethereal Fire!)