Bank of America former employees: 'We were told to lie'

[Judi Lynn]

14. Former Bank of America workers allege lies to homeowners

Former Bank of America workers allege lies to homeowners
Source: Reuters

Former Bank of America workers allege lies to homeowners
By Michelle Conlin and Peter Rudegeair Reuters
5:47 p.m. EDT, June 14, 2013

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

bank allegedly used these tactics to shepherd homeowners into foreclosure, as well as in-house loan modifications. Both yielded the bank more profits than the government-sponsored Home Affordable Modification Program, according to documents recently filed as part of a lawsuit in Massachusetts federal court.

The former employees, who worked at Bank of America centers throughout the United States, said the bank rewarded customer service representatives who foreclosed on homes with cash bonuses and gift cards to retail stores such as Target Corp and Bed Bath & Beyond Inc.

For example, an employee who placed 10 or more accounts into foreclosure a month could get a $500 bonus. At the same time, the bank punished those who did not make the numbers or objected to its tactics with discipline, including firing.

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