Webster Bank has been ordered by a Judge to pay investors and developers of Olde Town East condo project in Columbus, Ohio $25 million plus all the attorney fees. The bank was found guilty of having intentionally injured the homeowners.
In total, there were 9 homeowners who didnâ€™t settle out of court and they will each be getting an amount higher than $15,000 plus punitive damages of $250,000. The developer, Joe Recchie, on the other hand will settle for a mere $9.9 million dollars.
It seems the bank reported to credit agencies that these homeowners had defaulted on the loans they got for the construction when they had not.
Of course, the Webster Bank is going to appeal the courtâ€™s decision.
I hope that part of the settlement requires that the homeowners credit reports be cleared of any erroneous information. And I still can’t believe banks try to get away with scams like this.