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FTC: Bank of America subsidiary to refund fees to struggling homeowners

Not as big news as the national mortgage settlement worth nearly $1 billion to Maryland.

But the Federal Trade Commission announced today that a subsidiary of Bank of America agreed to settle charges that it illegally overcharged struggling homeowners by more than $36 million.

BAC Home Loans Servicing has already returned $28 million to consumers. In the new settlement, it will return another $8 million.

BAC Home Loans is the successor to Countrywide, one of the nation’s largest mortgage servicer that was acquired in 2008 by Bank of America.

Regulators had reached a record $108 million settlement in 2010 involving Countrywide and BAC. Countrywide was accused of overcharging customers for property inspections, title searches and other services. And BAC was prohibited from charging unreasonable fees for default-related services. More than 450,000 consumers received refund checks from the settlement.

In this latest complaint, the FTC accused BAC of overcharging consumers. BAC must now show that they either reversed the $8 million in charges or will refund them within six months, regulators say.  

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