The Federal Trade Commission (FTC) is mailing over 450,000 checks to former customers of Countrywide Home Loans (CHL) as part of a $108 million settlement involving allegations that CHL took advantage of delinquent borrowers and charged excessive servicing fees.
The checks will range from $500 to several thousand dollars.
“It’s astonishing that a single company could be responsible for overcharging more than 450,000 homeowners,” said FTC chairman Jon Leibowitz. “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.”
FTC cited Countrywide for marking up the costs of property inspections, lawn mowing and other property services from January 2005 through June 2008. Bank of America acquired Countrywide in July 2008. The settlement was reached in June 2010.