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Glitch Causes Foreclosure Settlement Checks To Bounce

DAVID GREENE, HOST:

All right. In recent days, the government has begun sending out checks to about 4 million people whose homes fell into foreclosure during the housing crisis. This is part of a multibillion dollar agreement with banks accused of making serious errors in processing those foreclosures.

STEVE INSKEEP, HOST:

Most of these checks are not so big. They average several hundred dollars. But still a check, an effort to make amends, so this is a bit of a problem. When some of the home owners try to cash their checks, the checks bounced.

GREENE: And so our last word in business is: insufficient funds. That's the reason why the checks were rejected.

INSKEEP: The independent company the government hired to oversee the payment process says it's fixed this glitch, and the money is now there. But we're left wondering who pays the bounced check fees?

GREENE: Good question.

INSKEEP: That's the business news on MORNING EDITION from NPR News. I'm Steve Inskeep.

GREENE: And I'm David Greene. Transcript provided by NPR, Copyright NPR.

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