Bank of America's June 6, 2010 settlement with the FTC isn't the first time the huge bank has had to deal with Countrywide’s deceptive practices since buying the lender in July 2008. In October 2008 a settlement was struck in which Bank of America agreed to modify troubled mortgages with up to $8.4 billion in interest rates and principal reduction. Judging from Countrywide’s past troubles, the most recent settlement indicates that there are likely more issues to come.

These wrongful and excessive fees have been nicknamed "junk fees" because they are exactly that – junk. There is no honest basis or rationale for them. Homeowners have been reporting to us that junk fees are being assessed against them by banks and mortgage servicers against them especially while their loan modification requests are being processed. These junk fees include charges for things being described as property maintenance, property inspection and even late payment processing.
 

Oftentimes this work is completed by the mortgage servicer’s subsidiaries and the mortgage lender charges the borrower a grossly increased rate. FTC chairman, Jon Leibowitz, states that Countrywide "took advantage of consumers already at the end of their financial rope."

Since the settlement with the FTC, Bank of America has agreed to produce Countrywide monthly account balances with explanations of fees to ensure they are accurate and true costs the homeowner should reasonably be expected to pay. This will allow borrowers to ensure they are not being scammed by inspection or landscaping fees they should not be required to pay. The changes Bank of America agreed to for Countrywide's transgressions reflect its arcane record keeping, which Leibowitz referred to "beyond abysmal."

Despite the $108 million, an FTC spokesperson states that there are still hundreds of thousands of overcharged homeowners who have not been included in this suit. If you are an overcharged homeowner who has discovered unexplained fees being added to your mortgage payments, contact Phillips & Garcia for a free consultation.