Bank of America and Countrywide Home Loans Sued by United Law Group

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A law firm engaged in the practice of helping distressed homeowners negotiate loan modifications has filed a lawsuit alleging that Bank of America and its subsidiary Countrywide Home Loans deliberately and maliciously sought to harm its reputation with its clients in order to stall and mislead clients.

According to United Law Group, representatives from Bank of America are telling the law firm’s clients that United has not contacted them and that they have not received any notices and legal demands on their behalf. In response to those claims, United Law Group — a provider of legal foreclosure prevention and foreclosure litigation service — today announced that it filed a complaint in the Superior Court of the State of California County of Orange Central Justice Center against Bank of America and its subsidiary Countrywide Home Loans, Inc. for tortuous interference with contract, defamation (slander) and unfair business practices.

The complaint alleges that as a direct result of the representations, statements and recommendations made by Bank of America and Countrywide Home Loans directly to United Law Group’s clients, United Law Group’s clients became distraught and confused as to the state of their loan modification applications, the services being performed by United for those clients, and whether such loan modifications were even possible in the first place. In short, United is claiming that Bank of America representatives were aware that their direct communications with United Law Group’s clients would cause a significant crisis in confidence, and intended those consequences when the communications were made.

Representatives from Bank of America are telling our clients that we have not contacted them and that they have not received our notices and legal demands,” says Richard Stinstrom, Senior Litigator for United Law Group. “This deliberate attempt to mislead our clients is a calculated move designed to shake consumer confidence so that these consumers cancel with United Law Group.”

United is asking the court to help recover actual damages, general damages and punitive damages. The firm is also seeking a preliminary restraining order and preliminary and permanent injunction against Bank of America and its subsidiary Countrywide Home Loans from engaging in any communications directly with the firm’s clients, other than as may be specifically permitted by United Law Group, following receipt of notice of representation by United Law Group.

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Ralph R. Roberts, GRI, CRS
Award-Winning REALTOR® and Author
Loan Modification For Dummies (avail. Summer 2009)

6 Comments

  1. It’s a mess out there.The consumer is the one who pays for all this. It’s sad, really. Everyone should be in the business of helping these homeowners avoid default & foreclosure, because it’s in the best interest of everyone involved, including banks, lenders, neighbors, taxpayers, and shareholders.

  2. APRIL Says:

    THESE PRACTICES ARE VERY MANIPULATIVE ON THE PART OF BANK OF AMERICA. THEY ARE NOT FOLLOWING THE GUIDLINES SET FORTH IN THE STIMULUS PACKAGE. I AM CLEARLY ELIGIBLE FOR A LOAN MODIFICATION ACCORDING TO THOSE GUIDELINES POSTED ON http://WWW.MAKINGHOMEAFFORDABLE.GOV. HOWEVER, I WAS TOLD BY BANK OF AMERICA REPRESENTATIVES THAT I COULD ONLY APPLY FOR A REFINANCE WITH A $5,000. CLOSING COST FEE AND A MONTHLY SAVINGS OF $76.00. ACCORDING TO BANK OF AMERICA, I DO NOT QUALIFY FOR A LOAN MODIFICATION BECAUSE I HAVE BEEN PAYING MY MORTGAGE ON TIME! THE FACT THAT I HAVE A MORTGAGE TO INCOME RATIO OF OVER 50% (NOT THE TARGETED 31% IN THE GOVERNMENT LOAN MOD. PROGRAM) AND A MORTGAGE BALANCE WHICH IS SIGNIFICANTLY HIGHER THAN WHAT MY HOME IS WORTH. I AM CLEARLY AT RISK FOR DELINQUENCY AND POSSIBLE FORECLOSURE. IT IS MY IMPRESSION THAT SINCE BANK OF AMERICA IS PARTICIPATING IN THIS GOVERNMENT PROGRAM, IT IS CONTRACTED TO MAKE THE LOAN MODIFICATIONS AS OUTLINED IN THE BILL??? IS THERE A WATCHDOG GROUP ACCEPTING THESE TYPE OF COMPLAINTS? IS ANYBODY WATCHING AND MONITORING THIS COMPANY OR OTHER LIKE IT? THANK YOU.

  3. jdblf in WA State Says:

    As someone who has been trying for 7 months to get help from CW/BofA it looks to me like United Law Group has been treated exactly like any other customer. I have been repeatedly given vague answers to my questions, been given the run-around, been disconnected, and outright lied to. I have been told something different by virtually every single person to whom I have spoken. (I have spoken to them at least 11 times) And I STILL have not gotten any help. Can I sue them too?

  4. Shaun Says:

    Why pay thousands for someone to do this for you when you can get live support 7 days a week and everything you need to get the modification done at home? Most people are getting the run around because they did not provide the right information and know how to propose a modification that makes sense to the borrower and the lender. This is clearly the best value and it takes the guessing game out of your modification status. Go to: http://www.financialaidamerica.com

  5. Jennifer Says:

    This is apalling and I agree with April- where can we go to complain?
    I have received the same conflicting information. Countrywide said it has no procedures or guidelines in placefor the loan modifications. I don’t get it. Bank of America has received billions from the American taxpayer and it is the same old story with these guys. This is more than outrageous.

  6. it’s sad that we must resort to such measures to get true justice for homeowners

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