4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs

Local Couple Sues Bank of America Over Improper Penalties

San Diegans Rick and Susan Dolfo have launched a class action suit against Bank of America, claiming breach of contract, unfair competition, violation of the Rosenthal Fair Debt Collection Practices Act, and violation of the Consumer Credit Reporting Agencies Act.

“This is yet another tale of Bank of America cheating its customers,” says the complaint filed by the Dolfos’ counsel, Timothy Blood.

The Dolfos did not have an impound account, where the lender collects property taxes and hazard insurance payments in monthly increments, then pays the bills on the customer’s behalf. Though the borrowers claim they were not delinquent on either taxes or insurance, Bank of America set up an impound account on their behalf and began deducting sums from their monthly payment without notifying the Dolfos.

Because the remaining money they sent each month was no longer enough to cover the mortgage payment, B of A declared the borrowers to be in default and began assessing late charges and penalties to their account. Their insurance company and the county assessor began receiving double payments, both from the Dolfos and the bank. The Dolfos further allege that B of A began falsely reporting their account as delinquent to credit bureaus, damaging their credit score.

“Prior to filing this suit, plaintiffs spent months trying to work with Bank of America to solve the problems created by Bank of America: to close the impound account, stop the double payment of homeowner's insurance and property taxes, stop the improper deduction from the monthly mortgage payments, reverse the improper default and have Bank of America correct the improper credit reporting. But, just like millions of other Americans who have tried to work with Bank of America, plaintiffs made no progress, and were constantly put off by Bank of America, mislead and ignored,” the complaint continues.

The suit claims that B of A and its loan servicing arm, BAC Home Loans Servicing (also named as a defendant) have done this to other borrowers as well, sometimes even beginning non-judicial foreclosures on borrowers who have never missed or made a short payment. Such a practice, which does not require court approval of a foreclosure and thus expedites the process, is common in states such as California that use trust deeds instead of mortgages as security instruments for home loans. The Dolfos are seeking class damages as well as punitive damages for the violations listed in the opening paragraph.

Here's something you might be interested in.
Submit a free classified
or view all

Previous article

Mayor says planned handover of Balboa Park’s United States cottage to Afghanistan was “bound to be chaotic.”

Gloria’s shame?

San Diegans Rick and Susan Dolfo have launched a class action suit against Bank of America, claiming breach of contract, unfair competition, violation of the Rosenthal Fair Debt Collection Practices Act, and violation of the Consumer Credit Reporting Agencies Act.

“This is yet another tale of Bank of America cheating its customers,” says the complaint filed by the Dolfos’ counsel, Timothy Blood.

The Dolfos did not have an impound account, where the lender collects property taxes and hazard insurance payments in monthly increments, then pays the bills on the customer’s behalf. Though the borrowers claim they were not delinquent on either taxes or insurance, Bank of America set up an impound account on their behalf and began deducting sums from their monthly payment without notifying the Dolfos.

Because the remaining money they sent each month was no longer enough to cover the mortgage payment, B of A declared the borrowers to be in default and began assessing late charges and penalties to their account. Their insurance company and the county assessor began receiving double payments, both from the Dolfos and the bank. The Dolfos further allege that B of A began falsely reporting their account as delinquent to credit bureaus, damaging their credit score.

“Prior to filing this suit, plaintiffs spent months trying to work with Bank of America to solve the problems created by Bank of America: to close the impound account, stop the double payment of homeowner's insurance and property taxes, stop the improper deduction from the monthly mortgage payments, reverse the improper default and have Bank of America correct the improper credit reporting. But, just like millions of other Americans who have tried to work with Bank of America, plaintiffs made no progress, and were constantly put off by Bank of America, mislead and ignored,” the complaint continues.

The suit claims that B of A and its loan servicing arm, BAC Home Loans Servicing (also named as a defendant) have done this to other borrowers as well, sometimes even beginning non-judicial foreclosures on borrowers who have never missed or made a short payment. Such a practice, which does not require court approval of a foreclosure and thus expedites the process, is common in states such as California that use trust deeds instead of mortgages as security instruments for home loans. The Dolfos are seeking class damages as well as punitive damages for the violations listed in the opening paragraph.

Sponsored
Here's something you might be interested in.
Submit a free classified
or view all
Comments
3

"But, just like millions of other Americans who have tried to work with Bank of America, plaintiffs made no progress, and were constantly put off by Bank of America, mislead and ignored,” the complaint continues."

This is all too common when banks and others get so big and toake over all the competitors there is no competition left in that business sector.

Dec. 7, 2011

Even when that bank was a California institution (it isn't any more), it was the absolute WORST bank to deal with. Why anyone chose to do business with BofA was a perpetual mystery to me. In fact over two decades ago, it nearly failed, and needed a bailout. You could have described BofA as inept, bureaucratic, arrogant, insulated, and a whole host of other derogatory things.

This case looks like a dumb administrative slipup that should have been corrected as soon as it was detected. But someone in that megabank just could not admit to making an error, and persisted in it. One can only wonder just where the loan servicing is done. Probably around Karachi or Mumbai. In both places the workers speak something that passes for English, but if you expect them to exercise any common sense, fuhgeddabouddit! They follow their "rules" as mechanistically as any robotic device ever would.

I can only hope that these folks really kick butt with this suit.

Dec. 7, 2011

2.Even when that bank was a California institution (it isn't any more), it was the absolute WORST bank to deal with.

When I was a commercial real estate broker I tried to do some deals with some REO BofA properties, and they were so big they just could not function. Same with Wells Fargo, but BofA was worse than Wells.

Dec. 7, 2011

Sign in to comment

Sign in

Ask a Hipster — Advice you didn't know you needed Big Screen — Movie commentary Blurt — Music's inside track Booze News — San Diego spirits Classical Music — Immortal beauty Classifieds — Free and easy Cover Stories — Front-page features Drinks All Around — Bartenders' drink recipes Excerpts — Literary and spiritual excerpts Feast! — Food & drink reviews Feature Stories — Local news & stories From the Archives — Spotlight on the past Golden Dreams — Talk of the town Letters — Our inbox [email protected] — Local movie buffs share favorites Movie Reviews — Our critics' picks and pans Musician Interviews — Up close with local artists Neighborhood News from Stringers — Hyperlocal news News Ticker — News & politics Obermeyer — San Diego politics illustrated Outdoors — Weekly changes in flora and fauna Overheard in San Diego — Eavesdropping illustrated Poetry — The old and the new Reader Travel — Travel section built by travelers Reading — The hunt for intellectuals Roam-O-Rama — SoCal's best hiking/biking trails San Diego Beer — Inside San Diego suds SD on the QT — Almost factual news Sheep and Goats — Places of worship Special Issues — The best of Street Style — San Diego streets have style Surf Diego — Real stories from those braving the waves Tin Fork — Silver spoon alternative Under the Radar — Matt Potter's undercover work Unforgettable — Long-ago San Diego Unreal Estate — San Diego's priciest pads Your Week — Daily event picks
4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
Close