Countrywide Tries to Settle Bankruptcy Abuse Claims

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Countrywide Financial Corp. made its second attempt since July to settle claims that it abused the bankruptcy system by losing or destroying mortgage payments, then charging homeowners late fees and legal costs.

Countrywide, bought this year by Bank of America Corp., removed a “nondisparagement” provision in its proposed settlement that may have hindered a wider investigation, according to court documents filed Sept. 3. The lender also dropped a demand that a judge bar almost 300 homeowners from suing it for any damages related to the lost payments.


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