Federal lawsuit alleges Bank of America isn't using federal bailout money
By KMOV Web Producer
(KMOV)-- Bank of America faces increasing scrutiny as homeowners start to fight back against foreclosure policies.
A lawsuit has been filed in St. Louis federal court seeking a class action against the company.
The bank is accused of not spending billions of dollars in federal bailout money.
The Home Affordable Modification Program was set up to prevent foreclosure if someone lost their job.
This lawsuit by a woman in Troy, Missouri says Bank of America is shirking that duty. News 4 found more people who agree.
Mary Boehm says she has to laugh, or she will cry.
She has piles of paperwork from Bank of America, including the letter telling her foreclosure would begin December 26th. Boehm says last week a Bank of America representative swore it was not true.
The Boehm’s have questioned the outcome of their house for the past 13 months, and when they staged a protest in Clayton December 20th, other victims came out of the woodwork.
That came as no surprise to Clayton attorney Mike Flannery. His client is seeking a class action settlement against Bank of America. They allege the bank got billions in tarp money but is giving little back.
Tuesday, a bank spokesman declined Marc Cox’s request for a phone interview. He had no comment on the lawsuit, but said the bank is still working to resolve the problems facing Mike and Mary Boehm.