During the economic downturn, many individuals lost their homes after becoming unemployed or taking a significant pay cut. However, some of these individuals who went through a foreclosure will soon receive a payment as the result of a settlement between various state attorney generals and the five largest mortgage-servicing companies in the U.S. The landmark $25 billion lawsuit alleged foreclosure abuses, and the homeowners who suffered as a result will soon receive a check with their share of the settlement.
The enormous number of checks set to be disbursed highlights how important this form of payment is to both businesses and people across the country. It also means consumers may have more disposable income they'll be eager to use in the coming weeks.
Many expecting settlement checks
The number of former homeowners involved in the suit is vast. According to Chicago Tribune, more than 962,000 people may be eligible to take advantage of the settlement. With the enormous number of payments projected to go out, many people will be depositing checks in the coming weeks.
Recipients may spend their share
Those impacted by the litigation are free to use their share of the settlement however they see fit, which means many people could cash the checks and spend them at local grocers or retailers or just deposit them into a bank account. With the average recipient receiving a settlement check for $1,480, those who were foreclosed upon will soon have access to some extra money they may sorely need. Retailers that anticipate a surge in consumer spending as a result of this settlement may need to invest in an updated check scanner to handle an increase in transactions at their companies and better manage backroom processes.
June 17, 2013