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Kia Franklin

Settling Certainly Has its Benefits for These Guys…

The Justice Department says a nondisparagement clause in a bankruptcy settlement agreement for Countrywide would hinder the Department's ability to investigate the company in the future. From the New York Times:

The Justice Department has challenged an agreement that the Countrywide Financial Corporation reached in a bankruptcy court in Pittsburgh, saying it would make it harder to investigate and sue the mortgage lending giant.

Last month, Countrywide agreed to pay $325,000 to the Chapter 13 bankruptcy trustee in Pittsburgh, Ronda J. Winnecour, to cover legal costs and settle litigation accusing it of abusive practices in 293 separate cases.

But the Justice Department said a “nondisparagement” clause in the Countrywide agreement might impede its own investigation of the lender.

TheCanary at LegalLinkNews blog has a ton of posts on Countrywide's alleged misconduct and relevant lawsuits filed against the mortgage lender by individuals and state governments across the nation.

Kia Franklin: Author Bio | Other Posts
Posted at 2:28 PM, Aug 12, 2008 in Consumer Rights | Corporate Abuse | Predatory Lending
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