Banking
Misbehavior in Banking

Bank Of America To Pay $36.8 Million To Military Members For Improper Foreclosures

Burgess COMMENTARY
I remain completely disgusted by the callous behavior of the 'big' banks. They are protecting themselves with all they can muster ... notably the 'fine print' that enables them to make the case that they have acted 'lawfully' while in fact behaving in a manner that nobody with any ethical backbone would tolerate.

There are two layers of PR that seem to be in play. At one level the 'big' banks are addressing the 'public' so that they have the appearance of being benign and good for society, and at the same time they are doing internal PR to keep the staff convinced that they work for organizations that are 'good' in all the senses of that word.

Both tracks of the PR are total baloney. The information that is in the public domain demonstrates beyond a shadow of a doubt ... but not enough for any court ... that the big banks have been complicit in all sorts of activity that has been profitable for the bank, but rotten for society as a whole, and in some if not many cases bad for their customers. Attempting to have a meaningful conversation with any of the junior level staff of the big banks is just about impossible ... and the reason for this is not totally clear. Is it fear of being fired, or is it that the internal misinformation in the banks is deep and dangerous ... or both?

No matter what the reason ... the best way to address the 'big bank' problem is for customers to 'move their money' ... move their business and get back to banking that has more respect for people and the community.

Some will say this is moving backward ... I argue this is merely getting back on track to a situation where banks serve the community rather than the other way round.
Peter Burgess

Bank Of America To Pay $36.8 Million To Military Members For Improper Foreclosures

Bank of America will pay $36.8 million to members of the military it improperly foreclosed on between 2006 and 2010, according to a settlement it reached with the federal government in 2011, the Justice Department announced this week.

Bank of America was already paying 142 military members under the original 2011 agreement, but a further review required by the settlement found 155 additional military homeowners who were subject to improper foreclosures, the Justice Department said. In total, Bank of America will pay more than 300 military members, as Reuters reports:

Each of 316 service members will receive at least $116,785, plus compensation and with interest, for any home equity lost. [...]

In 2011, federal regulators said banks may have improperly foreclosed on more than 5,000 members of the military and violated the Servicemembers Civil Relief Act, which provides certain financial protections to military members. Bank of America was also one of the five banks that reached a settlement with the federal government over widespread mortgage and foreclosure abuses. The Justice Department is still reviewing foreclosures from all five banks for violations of the Servicemembers act.