Schneiderman targeting banks with bad practices

By Matt Hicks

Schneiderman targeting banks with bad practices

June 4, 2013 Updated Jun 4, 2013 at 11:46 PM EDT

(WBNG Binghamton) New York's attorney general is targeting several banks, saying unfair lending practices are preventing people from being able to dig out of debt.

Attorney General Eric Schneiderman announced a series of lawsuits Tuesday in Buffalo; the first targets HSBC.

He said the bank has trapped thousands of homeowners across the state from negotiating or modifying mortgages to make them more affordable.

Schneiderman said these delays mean more debts and penalties for homeowners, which also makes it harder to negotiate in the future.

"This is the homeowners' best shot to renegotiate their loan to save their home," said Schneiderman.

The lawsuit comes after a study focusing on four counties found 300 New Yorkers embroiled in legal issues with HSBC..

Schneiderman wants a full investigation done by HSBC.

He also plans to file similar lawsuits against Bank of America and Wells Fargo.

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