Banks Double-Billing Bankrupt Escrow Accounts

Federal Investigators are pouring over bankruptcy filings across the country having found that banks may have been double-billing those in Chapter 13 bankruptcy for escrow fees. This is strangely reminiscent of the 2011 Countrywide scandal where the Federal Trade Commission stepped in and sent half a million homeowners checks for miscalculated fees except in this case, all of the victims are in bankruptcy. The New York Post‘s analysis shows in excess of $150 million in profits just for cases filed in 2011. Several institutions have been implicated in the matter though the original cases involved Wells Fargo and GMAC Mortgage. One attorney stated that up to 75% of her clients were being double billed.
The scam is perpetrated by charging the homeowner the late mortgage payment which already includes escrow and then charging them a secondary “escrow shortage” charge. The shortage charge not making up for any actual shortage, just being extra cash in their pockets.
Whenever I hear the term, “Bank Robber”, a new image comes to mind. One where the bank is stealing the money and the American Homeowner is the victim.