CHARLOTTE, N.C. — Former Bank of America employers said they received $500 cash bonuses and gift cards when they sent distressed homeowners into foreclosure.
Eyewitness News took a closer look at the allegations in the latest lawsuit on Monday night.
The lawsuit against Bank of America lays out some strong accusations. It claims the Charlotte-based bank gave cash bonuses and gift cards to employees who pushed homeowners into foreclosure.
It was the heart of the recession, at a time when many homeowners were looking for help, but on Monday night, according to a new federal lawsuit, former employees claim loan collectors who put customers into foreclosure were rewarded with gift cards to Target and Bed, Bath and Beyond.
The suit said those who would put at least 10 customers into foreclosure would get $500 bonuses.
According to Bloomberg, ex-Bank of America employees said mortgage workers falsified records and were told to delay applications for government loan assistance by asking customers to fill out paperwork that had already been received.
"I've seen all of those things that this lawsuit has mentioned. Yes I have," said Jason McGrath a foreclosure attorney in Charlotte. McGrath helps clients save their homes.
He said on Monday night that he works with Bank of America often and he is glad that the public is hearing the claims.
"It's one of those things that it's great for folks like me because we experience this on a day-to-day basis and we are finally glad to see it see the light of day," said McGrath.
On Monday night, in a statement to Eyewitness News about the lawsuit, Bank of America said, "These attorneys are painting a false picture of the bank's practices and the dedication of our employees. While we will address the declarations in more depth when we fire out opposition to the plaintiff's motion next month, suffice it is to say that each of the declarations is rife with factual inaccuracies."
McGrath said in some ways the lawsuit helps his clients.
"Some of my clients say I'm so glad to hear you tell me other people are going through this and it's not just me. They feel much more persecuted. It's weird since they feel better that other people are going through this as well," he said.
Seven former loan employees are pushing to get the lawsuit approved for class-action status.