Countrywide Class Action Settlement Discussed

A move to settle the class action suit against Countrywide Financial was announced earlier this week.

The U.S. District Court for the Western District of Kentucky says it will begin notifying former customers of the mortgage lender about the details of the settlement. No settlement has been made in the case.

News of this court action comes just days after another class action lawsuit was filed against the lender in California, charging that Countrywide Financial employees took and then sold tens of thousands or millions of its customers personal data files and exposed them to identity theft.

The notification program includes all of the U.S. and recognized territories and will alert customers who provided their personal information or made mortgage payments to Countrywide about a proposed settlement reached with the lender and its parent company, Bank of America.

The class action lawsuit claims a senior financial advisor formerly employed by Countrywide took confidential information from millions of consumer records and sold it to third parties. The lawsuit also alleges that Countrywide didn't do enough to protect confidential personal and financial information of its clients.

According to the court's announcement, the lawsuit includes everyone in the United States who received a letter from Countrywide anytime from August 2, 2008, to and including November 2, 2008, notifying them that their personal information was involved in an alleged theft committed by a Countrywide employee; or obtained a mortgage from Countrywide or whose mortgage was serviced by Countrywide prior to July 1, 2008. A hearing will be held on July 19, 2010, when the court will decide if it will give final approval to the settlement.

About the Author

Linda McGlasson

Linda McGlasson

Managing Editor

Linda McGlasson is a seasoned writer and editor with 20 years of experience in writing for corporations, business publications and newspapers. She has worked in the Financial Services industry for more than 12 years. Most recently Linda headed information security awareness and training and the Computer Incident Response Team for Securities Industry Automation Corporation (SIAC), a subsidiary of the NYSE Group (NYX). As part of her role she developed infosec policy, developed new awareness testing and led the company's incident response team. In the last two years she's been involved with the Financial Services Information Sharing Analysis Center (FS-ISAC), editing its quarterly member newsletter and identifying speakers for member meetings.

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