Follow us on Twitter and Facebook for the latest Class Action Lawsuit Settlement News!


Payments in Bank Foreclosure Abuse Settlement Begin Friday

By Sarah Pierce


bank foreclsoure settlement

Update 4/17/13: The Settlement Administrator has confirmed that some early payment recipients have experienced problems cashing their checks. This issue will be resolved shortly.

Starting Friday, more than 4 million homeowners who faced foreclosure in 2009 and 2010 will begin receiving payments from the $9.3 billion bank foreclosure abuse settlement announced last month by the Office of the Comptroller of the Currency (OCC) and the Federal Reserve.

Under the settlement, $3.6 billion will go to affected homeowners in the form of a cash check. The remaining settlement funds will go to struggling borrowers in the form of assistance, including loan modification and forgiveness.

According to a chart released yesterday, payments from the bank foreclosure abuse settlement will range from $300 to $125,000 – the maximum amount allowed under the settlement terms. The payments will come in multiple waves, beginning April 12, with the majority of affected borrowers receiving their payments by the end of the month. The final wave is expected to commence mid-July 2013.

The settlement is part of an investigation by the OCC and Federal Reserve into allegations that 13 banks engaged in improper foreclosure methods in 2009 and 2010.

The banks — Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo – are accused of wrongfully denying loan modifications, charging improper fees, robo-signing documents, and more.

Eligible borrowers do not need to do anything to receive a payment under the bank foreclosure settlement. Checks will automatically be mailed from Settlement Administrator Rust Consulting. Rust has already sent postcards to the 4.2 million borrowers notifying them of their eligibility to receive payment under the agreement.

Borrowers can call Rust at 1-888-952-9105 to update their contact information or to verify that they are covered by the agreement. Borrowers are warned to beware of scams and anyone asking them to call a different number or to pay a fee to receive payment under the agreement.

Accepting payment does not prevent these borrowers from pursuing legal action related to their foreclosure.


We tell you about cash you can claim EVERY WEEK! Sign up for our free newsletter.


Updated April 17th, 2013


All class action and lawsuit news updates are listed in the Lawsuit News section of Top Class Actions

Top Class Actions Legal Statement
©2008 – 2013 Top Class Actions® LLC
Various Trademarks held by their respective owners

Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.



  • Jeff DeVall April 11, 2013

    The postcard I received said the minimum was $800 but on this it says $300?

  • SY April 11, 2013

    I know what category I should fall under, according to that chart, but I wish there was a way to find out what category I will be paid under. I’ve called Rust and all they can say is that I am eligible for a payment – well, duh, that’s what my postcard said, too.

  • Dorothy April 11, 2013

    Send info and a claim form.

  • Julie April 11, 2013

    Jeff, that is a different settlement. You may get checks from both settlements.

  • Julie April 11, 2013

    Dorothy, this site is an information site only. You have to contact Rust Consulting. Posting here to send info and a claim form is basically doing nothing.

  • Julie April 11, 2013

    Considering the BOA Overdraft debacle that Rust Consulting oversaw, I imagine this will be more of the same.

  • SY April 11, 2013

    Don’t forget the DeBeers debacle that Rust oversaw, as well…

  • Scooter April 13, 2013

    Let’s see if this takes 5 years like the DeBeers fiasco Rust is “overseeing”. I bet you it does.

  • julie April 14, 2013

    It all sounds highly suspect to me. First of all, if they are doing this because the Independent Reviews were taking too long, then how on earth are they deciding “who” fits into what category” without doing a review? And how were they able to determine this so quickly? Methinks that the Independent Reviews were unearthing a lot of really bad garbage and the banks were worried about the transparency of “doing reviews.”

  • don April 15, 2013

    I had a review but no one ever told me the results of the review… but the bank quickly sent me loan modif docs by certified mail years a couple of months after I asked for my review

  • B. Bodziak April 16, 2013

    I know of two homeowners that received $300 checks today, April 15.

  • foye April 16, 2013

    I want to sue Independent Foreclosure Review, Wells Fargo, & all the crooks in the banking industry. Top-Class ..A IFR Class Action Lawsuit worth $5 billion dollars!!!!!!!!!! Tonight

  • SY April 16, 2013

    I received a check for $500 yesterday. Based on what I went through and the lists of payments, I should have received $50,000. The letter does not state why/how they determined what category I was in. So I’m obviously disappointed because $500 is nothing compared to me losing my house – but it’s $500 more than I had the day before.

  • NJ April 16, 2013

    I called Rust and they told me that my payment has not been issue yet so I will call every week to check.

  • julie April 16, 2013

    I think they said something like 90 percent of checks would be mailed out this month and the rest by mid-July. If you do the math, that makes sense in that 90 percent are getting less than $600. Most likely if you are owed more than that you will get tax paperwork to fill out so they can issue 1099s at the end of the year.

  • NJ April 16, 2013

    These are the check amount that people who received their check got so far;300,400,500,600,800,3750 & 6000 and one person rec” 15k

  • julie April 16, 2013

    No check for me today yet. I didn’t realize the big ones have been sent out then. I am curious then what they are talking about when they say they may need more information and what is holding up checks until July.

  • Julie April 17, 2013

    What a nightmare. Some of these checks are being refused due to “insufficient funds” from Rust. If you get a check, I’d make sure and wait a while before spending anything until the money clears.

  • NJ April 17, 2013

    I been calling Rust almost everyday just to see if my payment has been mail yet and still the answer is”no”.
    The waiting is killing me,lol

  • Scooter April 17, 2013

    Looks like Rust is committing FRAUD. Over 6 years on the DeBeers payouts and now sending out fraudulent checks (which is a Felony). How do we get the US AG to investigate Rust?

  • julie April 17, 2013

    I got the infamous postcard notice from Rust saying I was getting a check from the BOA Overdraft settlement in November. The checks went out in November. I never got mine. Over the past four months I have sent numerous letters and voicemails and emails. They don’t even respond. They are frauds.

  • julie April 17, 2013

    Supposedly the problem with the bad checks were with people who tried to cash their checks as opposed to depositing them in their bank accounts. Not everyone has a bank account… But considering their arrogance, I doubt this crossed their minds. They’ve bungled this since day one. If you recall, the first round of postcards asking people if they wanted a review was sent to the foreclosed addresses. If the home was foreclosed on, the victim didn’t live there anymore. Duh.

  • Penny Hall April 17, 2013

    I filed for this settlement through this web site. 4 months approx. later I received a letter from the attorney general’s office telling me all about the settlement, and requesting that we send in our info. and apply for the settlement. We had moved to WV they had no problem locating me. I immediately called the atty general’s office in Phoenix. Spoke to a woman there she confirmed they had received our paperwork about Oct 12, 2012. She said nothing else was to be done at this time. So I heard nothing until coming here and seeing the notice that checks went out 3/18 We received nothing!. I called the atty general’s office they referred me to the office handling the settlement. They have nothing on us, the property address, loan acct #, its like we don’t exsist. I called Wells Fargo, they didn’t have the date of foreclosure, but did have the acct. # (BIG DEAL). I can get no help from anyone at this point! The atty general of AZ, Wells Fargo, Rust consulting,
    I need to find out what’s happened here!
    Patricia A. Hall

  • Scooter April 17, 2013

    “We apologize to anyone who experienced problems trying to cash their checks. We are working hard and communicating with the banking regulators, the servicers, and other banks to ensure those issues are not repeated,” Rust Consulting Senior Vice President James Parks said. “We want to assure the public that checks we have mailed under the Independent Foreclosure Review Payment Agreement process are valid.”

    Writing back checks is a FELONY. James Parks should be arrested. How incompetent are these people? This needs to be on 60 Minutes.

  • Amy S. April 17, 2013

    I received a check today for $3000, deposited it my bank account. hopefully will clear.

  • Scooter April 18, 2013

    Amy, it won’t. This is a Ponzi scheme that would make Bernie Madoff blush.

  • Jen April 18, 2013

    Are these checks coming certified mail?

  • Julie April 18, 2013

    Penny, I think you are confusing this settlement with the National Mortgage one. There are two settlements out there. The Independent Foreclosure Review (this one) up until the end of this year gave people the option of requesting a review of their foreclosure. A lot of people didn’t even get notice of that option since Rust sent the notices to the “foreclosed” address and since after you are foreclosed on, you have to move, that was kind of stupid and one of their many blunders. They probably did it on purpose in the hopes of lessening response. After a year and a half of trying to do the reviews, they felt it was too expensive and time-consuming (I think they found too much liability for themselves and are looking to cut their losses and are doing this to avoid transparency) so they worked out a deal to give everyone a part of the settlement whose homes had been in the foreclosure process during I think 2008 and 2010 with one of the specified banks. If Rust doesn’t have you on file, you might not qualify for this settlement, but you might qualify for the other one. It will take a little research on your part. This site ( is just an informational site, so you can’t hold them accountable for your filing anything. You can’t file anything on this site anyway — you can find links that will take you to the appropriate site to file, but TopClassAction is for information only.

  • Julie April 18, 2013

    I have not heard of anyone who has gotten a check certified mail. Maybe they will for the really huge checks.

  • Julie April 18, 2013

    “Amy, it won’t. This is a Ponzi scheme that would make Bernie Madoff blush.”

    That doesn’t even make sense and is only inflammatory.

  • Julie April 18, 2013

    Congrats, Amy. From what I have read, this is not the first time this has happened with Rust. However, it seems to be fixed now, but I would still give it a week or two before you start spending the money. Supposedly, they neglected to transfer the money into the correct bank account, which isn’t surprising considering how they have bungled so many things.

  • Julie April 18, 2013

    Here is some more information regarding why it may be taking longer to get checks to some people. It seems this money may now be taxable (someone needs to hire a lawyer) because these checks are not being considered “damages.”

  • Jen April 18, 2013

    Checks for larger amounts are sent certified mail.

  • Scooter April 21, 2013

    Is anyone really getting checks?

  • Julie April 22, 2013

    Got my check today. $300. Should have been $60K since I was paying on a Chapter 13 when they foreclosed. But then again, the banks are the ones deciding who gets what. I really don’t think this is over…

  • bj mcgee April 24, 2013

    I have posted once and would like to know if anyone is ready to start a CLASS ACTION SUIT against any of these idiots who were put in charge!! information I received that the least amount anyone would get is $840.00. so how in the _ _ _ _ are people getting $300.00? time all of these so call organizations who have been putting their hands in our pie are being paid money we deserve. i’m talking thousands and thousands of dollars. someone needs to do some investing into their involvedment. probably why some of us will only get the minimum..

  • Julie April 24, 2013

    Go ahead and sue, but you should maybe research before you go off blowing steam. There are two settlements. The one that is paying $840 (probably more) has not started paying out yet. They put out a news release on Monday that those payments will start going out in 4 to 8 weeks. Please wrap your mind around this —- THERE ARE TWO SETTLEMENTS. YOU MAY GET PAID FOR BOTH OF THEM.

  • Bonnie Bryant June 3, 2013

    My dispute is with U.S. Bank. My home was valued at $124,000 by State Farm Insurance Company. I am an inactive veteran and I only received $300 from Rust Consulting Company. I, too, called several times, requesting information on how they determined the amount of money that was issued to me from the class action lawsuit. I, too, agree with everyone who has found fault with this agency. I have handed in all of my documents pertaining to the bank foreclosure issues to an La investigator reporter, because no attorney would accept my case. Class action lawsuits are just another form of fraud. Losing a home is not worth $300.

  • Lanne August 27, 2013

    I received a check for $1484. from Rusk.

  • Alma Rodriguez October 24, 2013

    Where can I go to find out if Im part of Class Action

Leave a Reply

Your email address will not be published. Required fields are marked *

View all: