Harrisonburg, Virginia -- The checks are in the mail for members of a class action lawsuit filed against Bank of America by Consumer Litigation Associates.
The massive settlement Bank of America will pay is the result of a lawsuit filed by CLA alleging that the bank failed to properly notify some consumers that it had used credit scores in processing mortgages or home equity loans, as required by the federal Fair Credit Reporting Act.
The most significant result of the case is that Bank of America has paid such a significant amount of money to settle the case, one of the largest class action settlements under the Fair Credit Reporting Act.
“The important thing is that the statute requires banks to give notice of the credit score as soon as reasonably practicable when they use or obtain a credit score to determine the consumer’s eligibility for a mortgage, and our client never received that notice.” stresses CLA Attorney Erausquin. “If consumers are to be educated about the status of their credit score and to receive the other information that Congress requires, companies should send this notice out right away after obtaining or using the credit score."
The settlement (https://creditscoresettlement.com/) negotiated by Consumer Litigation Associates was the largest class action settlement under these credit score notice provisions, and one of the largest ever under the Fair Credit Reporting Act.