Class action vs BoA rejected in US


wsuit accusing Bank of America of reneging on promises to help distressed homeowners modify their mortgage loans, and instead driving them into foreclosure, cannot proceed as a class action, a federal judge ruled yesterday. While saying borrowers’ claims “may well be meritorious,” US district judge Rya Zobel said they were too different to justify allowing a single, nationwide lawsuit. The decision is a setback for homeowners accusing the second-largest US bank of failing to comply with a 2009 government programme that encouraged banks to help struggling borrowers keep their homes. Bank of America denies the allegations.