Conn. AG wants better from Bank of America

Bryan Cohen May 25, 2011, 12:10pm


HARTFORD, Conn. (Legal Newsline) - Connecticut Attorney General George Jepsen said Wednesday that the Bank of America Corporation must improve its aid of Connecticut borrowers.

Jepsen alleged that his office, the state Department of Banking and the non-profit Connecticut Fair Housing Center have received multiple complaints from consumers whose loans are serviced by the bank. Jepsen wrote a letter to Brian T. Moynihan, the president and chief executive officer of Bank of America on the subject.

"I express these concerns on behalf of the thousands of distressed Connecticut borrowers who continue to experience significant difficulties due to Bank of America's failure to devote adequate resources to loss mitigation," Jepsen said.

"Bank of America can and should do more. Given that Bank of America is apparently poised to lift its moratorium on Connecticut foreclosures, I do not see that it has any credible plan to deal with the inevitable increase in ... requests."

According to Jepsen, some of the alleged complaints made by consumers include: the bank losing documents repeatedly; receiving foreclosure notices at the same time the borrower is under consideration for a loan modification; lack of communication; conflicting and contradictory instructions from bank employees; failure to honor a loan modification the bank has already agreed to; and a lack of any single employee who is familiar with a customer's file.

"Despite having had more than two years to 'right-size' your staff and establish effective procedures and systems, Bank of American has so far not prevented even the most common consumer complaints," Jepsen said.

Jepsen said he had been told the bank plans to establish new customer assistance centers nationwide, including one to serve New England in Dedham, Mass. Jepsen said that one center staffed by a dozen people to cover all of New England is not enough.

"(Resources must be improved) so that distressed Connecticut borrowers receive fair and honest treatment," Jepsen said.

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