Democracy Gone Astray

Democracy, being a human construct, needs to be thought of as directionality rather than an object. As such, to understand it requires not so much a description of existing structures and/or other related phenomena but a declaration of intentionality.
This blog aims at creating labeled lists of published infringements of such intentionality, of points in time where democracy strays from its intended directionality. In addition to outright infringements, this blog also collects important contemporary information and/or discussions that impact our socio-political landscape.

All the posts here were published in the electronic media – main-stream as well as fringe, and maintain links to the original texts.

[NOTE: Due to changes I haven't caught on time in the blogging software, all of the 'Original Article' links were nullified between September 11, 2012 and December 11, 2012. My apologies.]

Tuesday, June 04, 2013

HSBC To Be Sued By New York Over Foreclosure Abuses

* NY says HSBC ignored law designed to protect homeowners

* Bank declines to comment


NEW YORK, June 4 (Reuters) - The state of New York plans to sue HSBC Holdings Plc for ignoring a law designed to protect struggling homeowners from being thrown into foreclosure without getting a chance to renegotiate their mortgages.
The lawsuit being filed by state Attorney General Eric Schneiderman in Buffalo, New York, accuses HSBC of ignoring a state law that requires lenders to make a "request for judicial intervention" when they began a foreclosure action.

That process requires a settlement conference to be held within 60 days to allow homeowners to negotiate an alternative to foreclosure.

"Companies like HSBC are brazenly ignoring state law, leaving homeowners across New York stuck in a legal limbo where they can't even get the legally required settlement conference that could help them keep their homes," Schneiderman said in a statement.

Neal McGarity, an HSBC spokesman, declined to comment. A copy of the complaint was not immediately available.

Schneiderman is suing a month after he announced plans to sue Bank of America Corp and Wells Fargo & Co for violating terms of a $25 billion nationwide settlement over mortgage servicing abuses by failing to meet a timeline for processing mortgage modification applications.

That settlement covered five major banks, but did not include HSBC.

Schneiderman said his probe showed that HSBC was too slow to file paperwork in some 300 foreclosure cases in four New York counties. He said some paperwork was filed two years late, during which HSBC would charge interest, fees and penalties.

Original Article
Source: huffingtonpost.com
Author: Reuters 

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