The Federal Trade Commission has announced today that Bank of America will “provide refunds to homeowners who were overcharged before July 2008, when” Countrywide Financial Corp., “the company was bought by Bank of America”.

“The agency began investigating the loan-servicing business of the company, since acquired by Bank of America, in 2008 amid complaints about fees charged to homeowners who had fallen behind on their mortgages and were in default. Bank of America agreed to settle the charges “to avoid the expense and distraction associated with litigating the case,” it said in a statement. The settlement involved no admission of wrongdoing, BofA said. The settlement requires the company to stop the practices.

Once the court approves the settlement, the FTC said it would notify eligible homeowners in a process that could take several months. The agency has a website with more information, http://www.ftc.gov/countrywide

You can read the full article: http://www.latimes.com/business/la-fi-countrywide-mortgages-20100608,0,6444494.story?track=rss

http://www.ftc.gov/opa/2010/06/countrywide.shtm

Michelle