Legal aid groups to get $30 million from bank settlement

Because of the Bank of America settlement, at least $30 million for a program that raises funds for the nation’s providers of civil legal services to the poor.

News Story (District of Columbia, NATIONAL)

Catherine Ho
Washington Post
August 27, 2014
Link to story

Tags: Funding: Federal, Funding: IOLTA

Organizations mentioned/involved: DC Bar Foundation (DCBF)


DETAILS

The settlement — which resolved claims that the bank and its subsidiaries sold billions of dollars of mortgage-backed securities without fully disclosing to investors the quality of the loans — requires Bank of America to allocate $7 billion to consumer relief efforts. Of that portion, at least $30 million will go to the Interest on Lawyers Trust Accounts program, known as IOLTA.

The program, which is run independently in all 50 states, D.C. and the U.S. Virgin Islands, pools interest generated from client funds being held by lawyers in each state, and distributes the proceeds to civil legal services providers in that state.