Banks are under fire across the United States as lawsuit upon lawsuit gets thrown their way. Bank of America is currently facing a class action lawsuit amidst allegations of misconduct in the handling of issues related to mortgage loans.
Capital One bank is currently facing two class action lawsuits that allege the bank has withheld interest earnings of approximately $2 billion from savings account holders, as well as restricted access to funds and the inability to receive or make payments for account holders.
The irony of banks claiming to be the safest place to store your earnings whilst being the very reason you could lose everything is almost laughable.
Bank of America, not a bank for Americans?
In a lawsuit filed by Plaintiff Lynne Warshaw, Bank of America is alleged to have “failed to respond to requests for information and requests to correct errors related to borrowers’ residential mortgage loans,” according to Top Class Actions. The plaintiff filed this class action suit in a federal court of Florida on January 24.
The plaintiff writes in the lawsuit that the Bank of America is withholding call recordings despite borrowers being well in their rights to request it. Furthermore, the bank would not follow through on timely responses for requests made by borrowers even though the borrowers were led to believe that they would. The bank also provided false information regarding the window of time for responses.
Through this lawsuit, Warshaw aims to provide representation to a class Bank of America loan borrowers from Florida who had “submitted a request for information or notice of error to Bank of America and received a letter claiming the bank had 30 days from its own response date to send the information, rather than 30 days from the borrower’s request.”
Additionally, the plaintiff also hopes to represent a greater scale of Unite States loan borrowers who were denied their requests for “information or notice of error to Bank of America requesting copies of call recordings between themselves and their mortgage servicer, and that the bank refused to provide.”
Warshaw will really have her hands full with this threefold lawsuit as she also plans to represent U.S. loan borrowers who were misled when submitting “a request for information or notice of error to Bank of America and received a response letter that was dated within the response deadline and contained a postmark date that occurred after the response deadline.”
Why is Bank of America refusing to provide the requested call recordings?
One has to wonder is this withholding of call recordings from the bank is to ensure Bank of America does not implicate itself further as this class action lawsuit progresses. The class action suit accuses the bank of violating the Florida Consumer Collection Practices Act and the Real Estate Settlement Procedures Act.
Warshaw, who is represented by Scott D. Hirsch of Scott Hirsch Law Group PLLC, is pushing for a trial by jury and aims to achieve “declaratory and injunctive relief and an award of actual and statutory damages for herself and all class members,” as per the details of the submitted petition.
This is not the first class action suit of its kind that Bank of America has found itself embroiled in. Just a few months ago in late 2024, the Bank of America reached an agreement with plaintiffs to make a settlement payout of $3.25 million. This massive settlement payout was made by the bank in order to resolve claims that Bank of America had failed to send out proper notices after repossessing the vehicles of borrowers in Pennsylvania.
Since the current lawsuit is quite similar in nature to the one from late year, class members could potentially expect a similar settlement amount. This is just speculation, however.