Attorney General Eric Schneiderman filed suit against HSBC on Tuesday, accusing the bank of ignoring a state law that requires a lender to request a settlement conference within 60 days of beginning foreclosure proceedings.
Schneiderman claims HSBC has delayed filing the requests in thousands of cases across the state, and suggested similar lawsuits against other lenders are likely on their way.
He announced the lawsuit at a press conference in Buffalo Tuesday morning.
“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.
An HSBC spokesperson could not be immediately reached for comment. HSBC issued this statement Tuesday afternoon: “HSBC is committed to compliance with all applicable laws, which includes those related to foreclosure. We will respond appropriately to the State AG in this matter.”
Specifically, Schneiderman is trying to force HSBC to file the settlement conference requests, as well as require the bank to pay damages and waive any added interest charges and penalties that piled up as a result of the delays.
Schneiderman helped lead a national task force on investigating foreclosure practices that helped lead to the financial collapse of 2008. The task force eventually came to a national settlement with five major banks.
(AP file photo)