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Bank Foreclosure Abuse Settlement Update: Delayed Check Cashing to Be Resolved Soon
By Sarah Pierce
Payments for the bank foreclosure abuse settlement began April 12, but some Class Members are reporting their checks can’t be cashed due to “insufficient funds.”
Rust Consulting, the Settlement Administrator, confirmed that $3.6 billion is available to be cashed or deposited, but that some early payment recipients encountered problems with their banks.
“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.”
Borrowers with questions regarding payments should contact Rust Consulting at 1-888-952-9105, Monday through Friday, 8 a.m. – 10 p.m. ET or Saturday, 8 a.m. – 5 p.m. ET.
Financial institutions experiencing difficulties cashing payments should call 1-855-460-1528 for assistance.
Payments will continue through July 2013. The distribution is the result of an agreement between 13 mortgage servicers, the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System over allegations the banks engaged in improper foreclosure practices in 2009 and 2010.
Eligible borrowers do not need to do anything to receive a payment under the bank foreclosure settlement. Checks will automatically be mailed from Rust Consulting, and will range from $300 to $125,000 based on this chart released by the Federal Reserve.
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.
Updated April 17th, 2013
All class action and lawsuit news updates are listed in the Lawsuit News section of Top Class Actions
8 thoughts onBank Foreclosure Abuse Settlement Update: Delayed Check Cashing to Be Resolved Soon
i calleds the # listed just today and they told me the date my check should be sent out. no more the one week from now.
I signed on for this law suit about 8-9 months ago and still have not received a check or notification of any kind. I even sent mine through the “Office of the Comptroller” as I was instructed by my Senator and still nothing.
I belong in this lawsuit and was never notified of a class action lawsuit. How do I get added?
Donald, I am in the exact same position. What really sucks is that people who were never even foreclosed on have gotten payments. Plus, pretty nobody has gotten the amount for the category that they should have been in. The banks have not adhered to the agreement that was made in January.
got 2000 yesterday was expecting 800
I took the liberty of calling that number yesterday and was told absolutely nothing that I didn’t already know; that I’m “eligible” to receive a payment. What got me a little suspicious however; was the fact that the person I spoke with would only say that I should get my payment by August. Now; I was one of those that specifically asked for one of these “independent reviews” when I was going through this foreclosure process with my bank. Therefore; I feel that if the checks started being issued last Friday; and only half the people being issued these checks actually requested an “independent review”; that those that requested such review should receive their monies FIRST. I mean that’s only fair.
Anyone interested in filing class action suit against your mortgage company go to the following blog site:
foreclosurevictims.freeforums.org
Rust screws up again