Written by San Francisco Bankruptcy Lawyer, Jeena Cho
As a bankruptcy attorney, I have a similar reaction when my clients will tell me that he or she really “likes” Bank of America (Chase, Wells Fargo, etc.) and don’t want to end the relationship. “I’ve been with them for years and they’ve been good to me.” Maybe your bank isn’t breaking limbs, but they can certainly be abusive. They abuse you by charging you 30% interest rate, taking your last dime, and would not hesitate to take the clothing off your back given a chance. Like the abusers in domestic violence court, they will continue to abuse until the Justice System steps in and says “ENOUGH!”When I was a prosecutor, I was assigned to the Domestic Violence court. One of the most frustrating and difficult part of my job was getting the victims of domestic violence to see that the abuser was abusive. I would have victims with black eyes, broken arms, or bruised lips look me straight in the eyes and say “Oh, but he’s been so good to me. I don’t want to end the relationship.” I’d think to myself what? Are you kidding?
That’s precisely what happened when FTC and USTP recouped $108 million from Countrywide (acquired by Bank of America) for its borrowers. Among other offensive behavior, Countryside was accused of the following:
“When homeowners fell behind on their mortgage payments, Countrywide ordered property inspections, maintenance, and other services meant to protect the lender’s interest in the property, the FTA asserted. Bur rather than simply hire vendors to perform the services, Countrywide created subsidiaries to hire the vendors. The subsidiaries marked up the price of the services charged by the vendors - often by 100 percent or more - and Countryside then charged the homeowners the marked-up fees… As these troubled homeowners found their way into bankruptcy, Countrywide continued to add on the fees …” Source: Consumer Bankruptcy News, July 1, 2010 issue.
Seriously?
If you have been in an abusive relationship with your bank, maybe it’s time you stand up for yourself and say ENOUGH! Maybe it’s time you stop giving away your hard earned dollars, or your savings over to the abuser. Unfortunately, in this abusive relationship, the abuser can refuse to let you out of the relationship. It can sue you, take your home, put liens on your property, garnish your wages and take your money.
This is why bankruptcy laws exist. It’s a legal way for victims to say to the abuser - Dear Bank, I am breaking up with you.
