BofA's $20M Mortgage Deal Blocked Over Inflated Attys' Fees

Law360, New York (October 4, 2012, 4:14 PM EDT) -- A federal judge on Thursday rejected a proposed settlement worth up to $20 million between Bank of America Corp. and a class of homeowners who claimed the bank did not properly credit mortgage payments, saying more protections were needed to keep unclaimed settlement funds from going to cover bloated attorneys' fees.

U.S. District Judge Michael P. McCuskey said the $2 million in fees awarded to the attorneys seemed excessive given that most class members would each receive compensation totaling in the hundreds of dollars. Equally troubling...
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