Former Bank of America employees claim the company lied to homeowners

17 June 2013

Six former Bank of America employees have alleged the bank deliberately denied eligible home owners loan modifications and subsequently lied to them about the status of their mortgage payments and documents.

Reuters reports the bank allegedly used these tactics to lead homeowners into foreclosure, as well as in-house loan modifications.

The former employees, who worked at Bank of America centres throughout the US, said the bank gave customer service representatives rewards if they foreclosed on homes.

Staff who placed ten or more accounts into foreclosure in a month could receive a $500 bonus, according to the claims. Meanwhile, the bank punished employees who did not hit targets or objected to its tactics with discipline - including firing.

Rick Simon, a Bank of America Home Loans spokesman, told the news provider: "We continue to demonstrate our commitment to assisting customers who are at risk of foreclosure and, at best, these attorneys are painting a false picture of the bank's practices and the dedication of our employees."

By Gary Cooper

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