Monday, May 21, 2012

Lawsuit: Bank pocketed court fees in foreclosures


A Madisonville woman sued Bank of America on Thursday for pocketing court fees from foreclosure cases that she says belong to homeowners.

Kathleen Collins accused the bank of fraud, breach of contract, unjust enrichment and other violations in a class-action lawsuit filed in Hamilton County Common Pleas Court.

Collins’ attorney, Robert Newman, said the bank’s practice of keeping the fees could impact thousands of homeowners who should have been reimbursed money when their cases were resolved.

“It’s just not fair for Bank of America to be doing this,” Newman said.

A spokesman for the bank declined comment.

The lawsuit’s accusations revolve around court fees, typically about $550, which the bank is required to pay when filing a foreclosure action. Depending on the length and outcome of the litigation, a portion of those fees often is reimbursed to the bank when the case is over.

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