Zamansky LLC announces that it is investigating Bank of America, N.A. (NYSE: BAC)’s home equity line of credit (“HELOC”) and small business credit line cancellations. In Fall 2008, Bank of America received $25 billion in a federal bailout under the Troubled asset Relief Program (“TARP”) and, in January 2009, received another $20 billion and a government guarantee of $118 billion in potential losses. Bank of America has since repaid its TARP funds.
Since 2007, Bank of America has cancelled countless HELOC and business credit lines for borrowers. The TARP bailout was intended to provide banks such as Bank of America with capital so that they could continue making loans to homeowners and small businesses. Bank of America’s cancellations violated this purpose of its federal bailout.
Bank of America also may have violated numerous other federal laws and/or agreements with borrowers. Lawsuits have been brought against other banks for the same alleged wrongful HELOC and credit line cancellations. JPMorgan Chase Bank, N.A., announced that it has reached a settlement of the lawsuit against it.
If you were a borrower of Bank of America, and had a home equity or business credit line canceled, please contact Jake Zamansky at 212 742-1414, or firstname.lastname@example.org, for an evaluation of your rights.