GALVESTON, Texas (CN) - A federal judge refused to toss a couple's claims that Bank of America bilked them for additional interest on their mortgage and snuck another 13 years onto the maturity date of their loan.
To amass more interest on Long Nguyen and Lan Huynh's mortgage, Bank of America allegedly withdrew money from the couple's account up to five days late. This occurred even though the bank was supposed to withdraw funds on a set date under the PayPlan automatic payment plan, according to the complaint.
To amass more interest on Long Nguyen and Lan Huynh's mortgage, Bank of America allegedly withdrew money from the couple's account up to five days late. This occurred even though the bank was supposed to withdraw funds on a set date under the PayPlan automatic payment plan, according to the complaint.
"When a payment was actually applied later than agreed, more of that payment went towards interest rather than principal than if the payment had been applied earlier," the couple says.
Without their knowledge or consent, the bank also allegedly extended the maturity date for the loan, jumping from 2016 to 2029.
Without their knowledge or consent, the bank also allegedly extended the maturity date for the loan, jumping from 2016 to 2029.
The couple filed a federal class action against Bank of America, alleging breach of contract, declaratory judgment, and violations of the Truth in Lending Act and the Texas Deceptive Trade Practices Act.
U.S. District Judge Kenneth Hoyt refused to dismiss the case last week.
U.S. District Judge Kenneth Hoyt refused to dismiss the case last week.
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