Attorneys working with ClassAction.org have decided not to pursue this matter. If you still have questions about your rights in regard to interest on your escrow account, contact an attorney in your area. If you would like to see an open list of investigations on ClassAction.org, please visit this page. Please note that the information below was posted when this investigation began and is now for reference only.
At A Glance
This Alert Affects:
California homeowners who are required to pay money into escrow accounts as part of their mortgage agreements.
What’s Going On?
Attorneys working with ClassAction.org are investigating whether mortgage lenders are complying with California laws that require them to pay interest on money held in escrow accounts. Several banks, including Citibank and Bank of America, have already been sued for allegedly failing to pay this interest.
How Would I Know If I’m Earning Interest?
This interest should show up on your end-of-year mortgage statement.
Attorneys working with ClassAction.org are looking to hear from California homeowners who have a mortgage and are required by their lender to put money into an escrow account.
California law requires that 2% interest be paid out on these accounts – and now attorneys are looking to file class actions against mortgage lenders that are breaking the law. As part of their investigation, the attorneys need to speak to California homeowners to determine which banks, if any, can be sued.
What's Going On?
A number of banks, including Citibank and Bank of America, have been hit with lawsuits in California alleging that they failed to pay out the legally required 2% interest on mortgage holders' escrow accounts.
Attorneys working with ClassAction.org believe, however, that this is a widespread practice that affects many lenders throughout the state - and is not limited to these two banks.
How Could Class Action Lawsuits Help?
Class action lawsuits could help homeowners collect the interest they should have earned over the past several years and make sure they earn this money going forward. A successful case could also result in a court order requiring the mortgage lender to change the way it handles its customers’ escrow accounts.
How Would I Know If My Escrow Account Is Accruing Interest?
You would most likely be able to determine whether your escrow account is accruing interest by looking at your year-end mortgage statement.
As part of their investigation, the attorneys working with ClassAction.org are willing to review your statement, at no cost to you, to help determine whether your account is earning interest – and whether your lender is breaking the law.