HSBC sued for ignoring New York foreclosure law

Suzie Neuwirth

NEW YORK State is suing HSBC for ignoring a law designed to allow homeowners to renegotiate their mortgages before going into foreclosure.

The lawsuit, filed by Attorney General Eric Schneiderman, accuses the bank of racking up legal fees unnecessarily for as many as 25,000 homeowners, according to Reuters.

The lawsuit was filed on Monday and made public today.