Britton Law, P.A.
Free Consultation For Injury Cases
Due to precautions related to COVID-19, remote consultations via teleconferencing, Facetime or Skype are available. Please contact our office to discuss if this option is appropriate for your situation. Let’s all stay healthy and safe.

Learning from the past can help avoid future collection issues

The term robo-signing got coined just five or six years ago. It is not a phrase that has positive connotations about the value of leveraging advanced technology. No, robo-signing is that practice by lenders that has come to be associated with abuses that contributed to the recent mortgage crisis and the Great Recession.

A wise man once said, "Those who do not learn history are doomed to repeat it." And so it is that you might think that banks and other lending institutions would have learned from the experience of a few years ago that risks of robo-signing may be harmful not only to the economy generally, but also to an individual business. But recent news suggests that may not be the case.

It was just at the end of last month that word came that Bank of America agreed to settle allegations that it had failed to properly handle the legal process when looking to pursue collections of outstanding credit card and other consumer loans. As a result of the case, the bank has been hit with a $30 million civil penalty. It also is under orders to offer remediation to some 73,000 military customers and to improve its compliance practices.

Specifically, the Office of the Comptroller of the Currency cited Bank of America for submitting signed affidavits indicating particular cases had been reviewed. In many cases no reviews had been conducted. In some cases, the bank filed documents that hadn't gone through proper notary procedures.

In regard to the 73,000 military customers, regulators said the bank violated protections that are guaranteed by the Servicemembers Civil Relief Act.

A statement from the bank says the penalties stem from issues that were discovered four years ago and it says initiatives are underway to ensure proper compliance going forward.

What this reflects is that businesses, large or small, can run into difficulties with collections when compliance with state and federal laws is overlooked for some reason. Working with an experienced attorney is the right way to remedy that.

No Comments

Leave a comment
Comment Information

Send Us An Email. We’ll Listen.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Britton Law, P.A.
2850 Village Drive, Suite 206
Fayetteville, NC 28304

Toll Free: 888-811-9738
Phone: 910-401-3356
Fayetteville Law Office Map

Britton Law, P.A. Office

Call Our Law Firm:

910-401-3356 ~or~ 888-811-9738
Learning from the past can help avoid future collection issues | Britton Law, P.A.