Bank of America: From liar loans to liar bonuses

Bank of America: From liar loans to liar bonusesIf a company paid bonuses to its employees precisely because those staff members took specific actions to harm its customers, would you:

(a) Assume it was just a mistake – and anyone can make those

(b) Praise them for paying their employees well

(c) Figure the board of directors had responsibility but dropped the ball

In signed declarations, former employees of Bank of America (BAC) have alleged that the bank paid cash bonuses and gift cards to employees as a reward for taking actions that caused families to lose their homes, ProPublica and others reported. These families were desperately making payments and filing paperwork with the bank to keep their homes but, these former employees say, Bank of America management rewarded staff for effecting delays, denials, and outright lies to homeowner customers. Routinely, employees requested updates to information that had languished in the bank’s offices, these former employees say.

The bank known for liar loans now finds itself on the hot seat for liar bonuses. Bank of America did not return a call seeking comment for this article.

“Bank of America’s practice is to string homeowners along with no apparent intention to provide homeowners with the permanent loan modifications it promises…. I saw well over one hundred cases” in which a loan modification was cancelled with non-payment as the reason “when it was apparent from the computer system that the homeowner had actually made all the required payments,” one former employee wrote in a declaration.

Source: CNNMoney

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