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Laid Off Bank Employee Writes CEO to Complain About Banks Mortgage Mistakes

February 12, 2010

As Rialto loan modification attorneys, we were very interested to get a glimpse into a complaint against a major bank by one of its own former employees. The blog Consumerist ran a post Feb. 8 about a former Bank of America employee who was laid off last year after 21 years, most recently doing due diligence on loans. Vince K. also had a home loan through Bank of America, and he couldn't pay for it after he lost his job, so he arranged a short sale. Unfortunately, the bank never took the loan off its books after the sale, which led to debt-collection phone calls at 4 a.m. and a bill for insurance on a property he no longer owns. In January, a year after his layoff and five months after the short sale, he finally wrote to Bank of America CEO Brian Moynihan to beg for a sensible resolution.

The letter-writer starts out by acknowledging that he owes money for the deficiency balance -- the mortgage debt left over after the proceeds of his short sale. He said he was aware that he owed the money, but that the bank's way of handling this was to "robocall" him at 4 a.m. After weeks of such calls, he tried to contact someone at the bank directly and eventually ended up talking to someone who put his account into collections. He had to call to straighten that out before he could start making payments on the deficiency -- very small ones out of his unemployment check.

During that time, it became clear that the bank hadn't removed his loan from its books, in part because it was sending Vince K. letters demanding that he buy insurance on the property he sold. The bank eventually "force placed" insurance and billed him for it. Then he began receiving collection phone calls about the mortgage debt again. Despite explaining his situation, then reaching out to contacts in the company, he couldn't stop the calls. Finally, he wrote this letter to the media and to the CEO, explaining his problem in detail and with documentation.

Our Placentia loan modification lawyers have read many horror stories like this, but rarely in so much detail and from someone who understands the company from the inside. If the allegations in the letter are true, it seems clear that Vince K. is a victim of severe incompetence by the bank. Not only has the bank failed to clear his mortgage debt off its books, but it has repeatedly violated the Fair Debt Collection Practices Act by attempting to collect debt that is not validated and by calling outside the legally allowed hours. Furthermore, we think it's significant that all of this happened to a former Bank of America employee who presumably knew which departments and people to speak to about the problems. If someone like that can't get a basic problem solved, the chances must be even lower for someone with no bank experience or connections.

At Howard Law PC, we help borrowers cut through this bureaucracy and red tape to get action from lenders and mortgage servicers. We have represented numerous clients who came to us frustrated by seeming incompetence or indifference from their lenders. In most cases, we've been able to get results for them very quickly, even when they've spend months trying fruitlessly to solve the problem on their own. We believe our success comes from our status as Torrance loan modification attorneys who can and will sue lenders if our clients' rights are violated. In fact, we start every case by examining the client's history for actionable predatory lending or other legal violations.

If you're struggling to get your bank to solve what should be a simple problem, Howard Law can help. To set up a free, confidential case evaluation, please contact us toll-free at 1-800-872-5925 or send us a message through our Web site.