Bank of America Fee Class Action Lawsuit Overview:
- Who: A customer has deposited a class action lawsuit against Bank of America.
- Why: The plaintiff alleges Bank of America improperly charges fees on delinquent home mortgage loan accounts.
- Where: The class action lawsuit is pending in California federal court.
Bank of America improperly charged homeowners who were behind on their mortgage payments for unnecessary expenses and/or unprovided services, a new class action lawsuit alleges.
“The fees are intentionally disguised as being for necessary or otherwise reasonable expenses to deceive homeowners in furtherance of a scheme to generate unnecessary and improper fees and otherwise enrich BOA at the expense of homeowners,” the lawsuit states.
Among other claims, Plaintiff John Castorina says Bank of America uses an automated default servicing platform to illegally, unfairly, and fraudulently charge defaulted or at-risk-of-default borrowers for multiple and repetitive “property inspections” that are not required by lenders, not permitted by lender guidelines, and, in many cases, not allowed under state and federal regulations and guidelines.
Castorina also claims that fees such as forced placed flood insurance are added onto the mortgage payoff amount a homeowner must pay to Bank of America to satisfy the lien on their property and avoid foreclosure. And, with the assistance of Integon National Insurance Company, Castorina claims the bank issues force-placed insurance at unconscionably high rates, well above market rates, and with no added benefit to the insured.
“This class action seeks to recover fees improperly charged by BOA to homeowners with mortgages serviced by BOA for unnecessary expenses and/or unprovided services, which are in some cases outright fraudulent and in all cases excessive, deceptive and otherwise unfair,” the lawsuit states.
Bank of America Charged Fees, Refused to Acknowledge Home Ownership, Claims Class Action
Castorina claims that he sought a loan modification of his mortgage with Bank of America in 2019. However, his application was denied because the bank could not confirm he owned the property. The plaintiff sent BOA a copy of his deed to confirm his ownership, but BOA refused his monthly payment for the mortgage and put his account into delinquency. It also raised his mortgage payments.
In addition, Castorina obtained records that show BOA conducted approximately 15 needless property inspections, some of which were for “vacant” inspections when BOA had direct knowledge that he occupied the home. Seven of these charges for property inspections were charged to his account on the same day, which was after he was forced to pay $19,772.40 to bring his account out of default and stop the trustee from taking his home.
Also during this time, BOA caused Plaintiff’s required hazard insurance to lapse and force-placed a new policy.
“Aside from a contrived reason for placing plaintiff’s home in default and at the risk of being taken, BOA’s charges to plaintiff’s account evidence charges for services that were completely illusory, unnecessary and illegal. They were charged to plaintiff for no reason other than for BOA to enrich itself and its affiliates,” the lawsuit states.
On behalf of himself and other Bank of America customers in California, Castorina seeks compensatory damages, restitution, civil penalties, pre- and post-judgment interest, and attorneys’ fees, as well as an order enjoining BOA and Integon from continuing their unfair, unlawful, and/or deceptive practices.
The bank has faced similar legal claims. Indeed, Bank of America once agreed to pay $31 million in a class action settlement with homeowners who alleged they were illegally forced to purchase overpriced and excessive flood insurance.
Are you a Bank of America customer who has been charged for unnecessary expenses or unprovided services? Let us know in the comments!
The plaintiff is represented by Dennis J. Stewart of Gustafson Gluek, PLLC.
The Bank of America Fee Class Action Lawsuit is Castorina, et al. v. Bank of America, N.A., et al., Case No. 2:21-cv-02004-WBS-KJN, in the U.S. District Court for the Eastern District of California.
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14 thoughts onBank of America Charges Unnecessary Fees to Delinquent Accounts, Says New Class Action Lawsuit
yes. 1st application for modification : denied. 2nd application approved and the arrearage amount claimed in bankruptcy was added again in the modified mortgage along with a lien that was included in bankruptcy that had been paid
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I have paid fees and then they closed my account. They accepted Zelle transfers then closed my account after taking out the fees an gave me no money from the deposit. I have all my statements and fees they charged on paper statements. Chase did the same and required that I verify my address before they unfroze my account. Bernie Madoff never was asked for I.D. and verification of account funds…look what he did.
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