United States - Countrywide Compensation

The Federal Trade Commission mailed 450,177 refund checks worth almost $108 million to homeowners who were allegedly overcharged by Countrywide Home Loans, Inc. As part of the FTC’s efforts to protect financially distressed homeowners, the FTC reached a settlement with Countrywide last year over allegations that the company collected excessive fees from borrowers who were struggling to keep their homes.

According to the FTC, Countrywide used unlawful practices in servicing homeowners' mortgages. The company allegedly:

• charged excessive fees for default-related services like property inspections;
• made claims about amounts owed by homeowners in bankruptcy that were false or couldn't be backed up; and
• didn't tell people going through bankruptcy when new fees or charges were being added to their loans.

The FTC's June 2010 settlement order required Countrywide, which is now owned by Bank of America, to pay $108 million to be used for refunds and barred the company from taking advantage of borrowers who have fallen behind on their payments. The refunds are being distributed to consumers whose loans were serviced by Countrywide between January 1, 2005, and July 1, 2008, and who were subject to the company's allegedly unlawful practices. The amount of each check will vary from less than $500 to as much as several thousand dollars. More information about the settlements is available in English and Spanish and in a series of videos.