FleetBoston's Mortgage Division Faces Lawsuit

BOSTON-Minnesota Attorney General Michael Hatch filed a lawsuit against Fleet Mortgage Inc., FleetBoston Financial Corp.’s mortgage division, alleging that the company shared customers’ home mortgage account numbers and other personal information with telemarketers. A spokesperson at the Massachusetts attorney general’s office says that they are aware of the lawsuit but have not had time to look into it yet.

In a released statement, the locally-based financial company denies the charges stating that the Minnesota attorney general’s press release and complaint “are inflammatory and contain allegations that are inaccurate and based on incomplete facts….We will vigorously defend against these allegations.”

Hatch charges that Fleet sells its customers’ names addresses and loan account numbers to telemarketers who offer discounted services. According to Hatch, Fleet and their telemarketers lead consumers to believe that they are agreeing to a free trial in a membership club but fail to adequately inform the customer that they need to opt out or be automatically billed. Fleet bills the customer’s mortgage account for the club.