Bank of America is controlling the news cycle lately. First, the bank eliminated overdraft fees for debit card purchases. Now, the bank has apologized to a woman for seizing her parrot.
Back in October, Bank of America believed Angela Iannelli was defaulting on her mortgage and she had abandoned her house. The bank ordered a contractor to visit the house to install a new lock and otherwise secure the location. The contractor saw Luke, a blue macaw, and took the pet, believed to be abandoned, away for its supposed safety.
When Iannelli called to rectify the situation with the bank, here is how the conversation progressed, from the Wall Street Journal, where the story was originally reported:
Ms. Iannelli, who owns a diner and works part-time as a bartender, said Bank of America representatives weren’t helpful when she called in to protest. They first denied knowing where the parrot was, and later told her she could go to the offices of the contractor, about 80 miles away, to retrieve the bird herself. Ms. Iannelli said bank representatives also told her they were “tired” of hearing from her, hung up on her and advised her to seek help from the police.
This incident occurred after the owner missed only one mortgage payment. She is now suing for $50,000 for the emotional distress of the event and the week she spent without Luke, in addition to the other actions taken by the contractor. Before the contractors walked off with the parrot, they cut water lines and electrical wiring and poured antifreeze into various drains.
Even if the bank had the correct information and were stepping in to secure a house that was truly in trouble, these actions seem drastic.
Bank Sorry for Taking Parrot, James R. Hagerty, Wall Street Journal, March 11, 2010
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{ 8 comments… read them below or add one }
So it sounds like they started to foreclose and take possession on the wrong house. The fact that the woman missed a payment meant she was in default but not to the point that the bank would take possession.
I can’t imagine why they would physically cut the electric wires and water pipes. Putting anti-freeze in the drains would make sense to keep pipes from potentially freezing if they shut off utiltiies.
$50,000 for temporarily taking a parrot, by someone apparently acting with the best of intentions. And you wonder why health care costs etc are so high in America! You guys really need to reign in this compensation culture. Just an honest opinion from the other side of the Atlantic.
it’s not just the parrot. it’s the cutting of the lines and other winterizing measures. She had to go through a hell of a lot to get everything reinstated. Cutting the lines usually just means they disconnected service. But if they physically did cut the lines, that is very expensive to re-do. and depending on where she was and when this was, she didn’t have any heat. she probably had to stay in a hotel and spend money eating out that she normally wouldn’t have spent. It can take weeks to physically re-connect lines. That would be a lot of hotel fees. And attorney’s fees will eat 40% of this, so she’s not asking for a lot when all is said and done.
“And you wonder why health care costs etc are so high in America! You guys really need to reign in this compensation culture.”
If you’re thinking that malpractice insurance/ lawsuits are causing our health care costs to go up then thats not really much of our costs. Malpractice costs are less than 2% of our total spending on health care. (ref : CBO http://www.cbo.gov/ftpdocs/49xx/doc4968/01-08-MedicalMalpractice.pdf)
@Jim – Interesting, perhaps we hear a one-sided view of the debate from this side of the Atlantic. I’ll look into it more.
@Laura – Yes, actually dangerous!
how ridiculous on the bank’s part! WTF?! How is helpful to your investors to cut up the home of someone who is not even in foreclosure? it would be nice if the homeowner wasn’t late on her mortgage, but missing one payment is not the same as going into foreclosure (nor should it be).
I think it’s the bird’s fault…he should’ve said something.
As a “victim” of Bank of America’s tatics myself I applaud the homeowner for having the strength to take on BofA. I was current on my payments when I got a reasonable (short sale) offer on my home. BofA drug their feet so long I could not stay current. They then sent a contractor in to “secure” my home (although I was still paying utilities, lawn care, etc and had people watching the house.) I ended up having to pay for damages and restart fees for the water in order for the home to pass inspection to complete the sale – 7 months later!!! In attempting to work with them I endured hour long waits on the phone, rude employees and an unbelievable amount of paperwork (sent multiple times.) I hope more people protest their unprofessional tactics.