Bank of America is facing backlash after mistakenly discharging customer loans and then suing them to fix the error. This has left many homeowners, like 75-year-old Diane Jaques, feeling frustrated and angry.
A Costly Clerical Error
Jaques, a homeowner in Massachusetts, was sued by Bank of America after the bank prematurely closed her home equity line of credit. She had never missed a payment, and the whole situation left her shocked and stressed. The error stemmed from a paperwork cleanup following the Bank of America’s merger with FleetBoston Financial, where Jaques originally took out the loan. During this process, the bank accidentally discharged thousands of mortgages, including Jaques’.
The Bank’s Response and the Aftermath
To correct the mistake, Bank of America asked Jaques to sign some documents. The process proved difficult, requiring notarization, and Jaques ultimately gave up. This led to the lawsuit. After finally signing the necessary paperwork, the lawsuit was dropped. Jaques stated the entire experience was a “nightmare.”
More Than Just One Case
Bank of America spokesperson Bill Halldin explained that the bank contacted affected customers to refile mortgage paperwork. If customers didn’t respond or complete the process, the bank sued. Jaques is just one of over 100 Massachusetts homeowners who faced this situation. Halldin justified the lawsuits as the only way to correct the records legally when homeowners didn’t cooperate voluntarily. While the bank will cover the cost of correcting records and notary services, it won’t reimburse homeowners’ legal fees.