HUNTINGTON – A woman is suing Bank of America after she claims it failed to properly apply payments to her account.
Teays Valley Trustees, LLC, was also named as a defendant in the suit.
In 1996, Ladonna C. Workman purchased a double-wide residence in Barboursville and in 2003, she refinanced her loan with Countrywide Mortgage, which was later assigned, purchased or transferred to Bank of America in 2009, according to a complaint filed Jan. 10 in Cabell Circuit Court.
Workman claims on Jan. 13, 2009, she filed for bankruptcy protection in the U.S. Bankruptcy Court of the Southern District of West Virginia, and on Sept. 29, 2009, she initiated an adversary proceeding alleging that Bank of America had failed to apply payments properly and wrongfully charged for forced place insurance.
On March 10, 2011, Workman and Bank of America entered into a confidential settlement of the issues in the adversary proceeding, according to the suit. However, since that time, Bank of America has continued to misapply payments, has failed to credit payments as they were made and has charged excess late fees, the complaint states.
Workman claims she has attempted to resolve the matter with Bank of America, but it has stalled her attempts and she has received a notice of foreclosure from Teays Valley Trustees.
Bank of America has engaged in improper and unlawful conduct that has caused Workman to suffer emotional distress, annoyance, aggravation and humiliation, according to the suit.
Workman claims Bank of America’s actions violate West Virginia code.
Bank of America made false representations regarding the character, extent or amount of a claim against Workman and has wrongfully charged her interest on payments it wrongfully refused, according to the suit.
Workman is seeking actual damages and civil penalties of $4,000 for each violation pursuant to West Virginia code. She is being represented by Brian R. Blickenstaff.
The case has been assigned to Circuit Judge F. Jane Hustead.
Cabell Circuit Court case number: 13-C-24