SPRINGFIELD, Mass. (WWLP) – This week, Massachusetts slapped a huge lawsuit on five major U.S. banks. The lawsuit claims the banks’ shady practices have contributed to people illegally being removed from their home.
State Attorney General Martha Coakley says she is not going to wait any longer to hold banks accountable for allegedly deceptive foreclosure practices. She has filed suit against Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial.
“Even if the banks think they are too big to fail, we believe that they’re not too big to have to follow the law,” Coakley said.
Specific accusations include deceiving homeowners about loan modifications, unfair and confusing foreclosure practices, and the widespread use of fraudulent documents including robo-signing to make foreclosures happen more quickly. Coakley claims those practices directly contributed to people being thrown out of their homes illegally.
According to NBC News, two million homeowners face foreclosure.
The federal government has been working with state attorneys general for a year to negotiate a multi-billion dollar settlement with banks.