More than 450,000 refund checks are in the mail headed to homeowners who were allegedly overcharged by Countrywide Home Loans.
The Federal Trade Commission reached a settlement with Countrywide over allegations that the company collected excessive fees from borrowers who were struggling to keep their homes. The FTC says the refund checks are worth almost $108 million and will be distributed to consumers whose loans were serviced by Countrywide between January 2005 and July 2008.
According to the FTC, homeowners who were in default on their loans were charged excessive fees for services such as property inspections, lawn mowing, and other services meant to protect the lender’s interest in the property. The FTC charges Countrywide used subsidiaries that marked up the price by as much as 100 percent.
“It’s astonishing that a single company could be responsible for overcharging more than 450,000 homeowners,” FTC Chairman Jon Leibowitz said. “Countrywide’s unconscionable behavior harmed American consumers on a massive scale and we are proud to be getting every single dollar back to hundreds of thousands of struggling consumers who can least afford to lose the money.”
If you want more information about these refund checks visit the FTC’s Countrywide settlement webpage.