Gallagher & Associates Team
Thursday, March 17, 2011
Tuesday, March 1, 2011
Monday, February 28, 2011
BOA Settles Class Action Overdraft Suit
Bank of America has agreed to a $410 million settlement in nationwide class action lawsuits alleging that banks have abusive and excessive overdraft fee policies.
The suits, consolidated before U.S. District Court Judge James Lawrence King in Miami, sought to recover millions of dollars in fees charged to consumers on debit card purchases.
Last spring, Bank of America said it would stop charging those fees. Instead, customers could only make debit card purchases if they had enough money in their accounts. Other banks targeted in the lawsuit include Citibank, JPMorgan Chase, U.S. Bank, Wells Fargo and Wachovia, which merged with it.
The bank limits the number of overdraft fees a customer can receive to four a day from 10 a day. Bank of America also said it extended deposit cut-off times to 8 p.m. and reduced the length of deposit holds, which allows customers quicker access to deposited funds.
The suits, consolidated before U.S. District Court Judge James Lawrence King in Miami, sought to recover millions of dollars in fees charged to consumers on debit card purchases.
Last spring, Bank of America said it would stop charging those fees. Instead, customers could only make debit card purchases if they had enough money in their accounts. Other banks targeted in the lawsuit include Citibank, JPMorgan Chase, U.S. Bank, Wells Fargo and Wachovia, which merged with it.
The bank limits the number of overdraft fees a customer can receive to four a day from 10 a day. Bank of America also said it extended deposit cut-off times to 8 p.m. and reduced the length of deposit holds, which allows customers quicker access to deposited funds.
Additional Foreclosure Firms Investigated
The Florida Attorney General's Office has requested information from three additional law firms in connection with allegations of foreclosure fraud. The Attorney General requested documents and information from Albertelli Law, Kahane & Associates and Law Offices of Daniel Consegura.
Prior to this request, the Attorney General made the same request of Law Offices of David Stern, Shapiro & Fishman, Law Offices of Marshall C. Watson and Florida Default Law Group in connection with similar investigations.
Many of bank and mortgage lender clients of David Stern's firm have terminated their relationship with the firm and sought replacement counsel amidst allegations of fraudulent document practices.
Prior to this request, the Attorney General made the same request of Law Offices of David Stern, Shapiro & Fishman, Law Offices of Marshall C. Watson and Florida Default Law Group in connection with similar investigations.
Many of bank and mortgage lender clients of David Stern's firm have terminated their relationship with the firm and sought replacement counsel amidst allegations of fraudulent document practices.
Mozillo Criminal Case Closed
After paying a $22.5 million fine, and after Bank of America footed the bill for a $45 million settlement on his behalf, the Department of Justice has closed its criminal investigation of former Countrywide CEO Angelo Mozilo.
In October Mozillo settled a civil lawsuit with the Securities and Exchange Commission for $67.5 million, while not admitting or denying fault for his actions, which the SEC alleged helped bring about the financial meltdown.
The U.S. Justice Department closed the investigation of Mozilo that began in 2008, determining that those same actions made by Mozilo while he was CEO of the company were not criminal. But other investigations of Mozilo are still underway.
Last week Rep. Darrell Issa requested a subpoena be issued to Bank of America, which bought Countrywide in 2008, regarding the "Friends of Angelo" program that offered preferential loan terms to lawmakers and government officials, allegedly in exchange for political favors.
In October Mozillo settled a civil lawsuit with the Securities and Exchange Commission for $67.5 million, while not admitting or denying fault for his actions, which the SEC alleged helped bring about the financial meltdown.
The U.S. Justice Department closed the investigation of Mozilo that began in 2008, determining that those same actions made by Mozilo while he was CEO of the company were not criminal. But other investigations of Mozilo are still underway.
Last week Rep. Darrell Issa requested a subpoena be issued to Bank of America, which bought Countrywide in 2008, regarding the "Friends of Angelo" program that offered preferential loan terms to lawmakers and government officials, allegedly in exchange for political favors.
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