Quantcast
Get breaking news alerts via email

Click here to manage your alerts
Refunds to go out in Countrywide settlement
This is an archived article that was published on sltrib.com in 2011, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Washington • More than 450,000 homeowners who took out mortgages with Countrywide Financial Corp. will soon receive their slice of a nearly $108 million settlement over claims that the lender overcharged borrowers facing foreclosure.

The Federal Trade Commission said Wednesday it will mail refund checks to 450,177 borrowers starting Thursday.

The action stems from a settlement reached last year between the FTC and Bank of America Corp., which acquired Countrywide in July 2008.

The deal resolved federal charges that Countrywide charged borrowers who were behind on their mortgages with fees that added up to hundreds or thousands of dollars. The fees were for services like property inspections and landscaping.

At the time of the settlement, the FTC estimated Countrywide had overcharged around 200,000 homeowners. That was later revised to more than 450,000.

In addition, the FTC accused Countrywide of making false claims to some borrowers about how much they owed on their mortgage or the status of their loan, and claimed the lender added fees and other charges to borrowers' mortgage accounts without notice.

The allegations that led to the settlement took place before Bank of America acquired Countrywide.

The refunds will be distributed to consumers whose loans were serviced by Countrywide between Jan. 1, 2005, and July 1, 2008.

Article Tools

 Print Friendly
 
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.