Bank of America's brand has been tarnished during the foreclosure fiasco, in part because of negative media that has dogged the bank for the past three years. Local newspapers love local angles on big national stories, and the foreclosure fiasco was in many ways tailor-made for them.

For local reporters, Bank of America made for a good villain. And so it goes with the story of Norma Phillips, of Oceola Township in Livingston County, Michigan, who has staged a one-woman protest of Bank of America's decision to foreclosure on her. Recall that negative media over wrongful foreclosures have dogged the bank over the last year. According to the local Daily Press & Argus, Phillips contends "she is losing her home because the bank applied her monthly mortgage payment, which was automatically withdrawn from her checking account, to an escrow account for bank-purchased homeowner's insurance and property taxes--two bills she paid privately--rather than to her mortgage bill. As a result, the mortgage appeared to be in default."

By now, Bank of America now has a process in place to grapple with these sorts of situations. It says it is taken the claims seriously and will correct the situation if it can confirm Phillips' account of events. Once a consumer's complaint hits the media, it takes on a whole new urgency. My sense is that if a mistake was made, it will be corrected, and amends will be made. If she is truly behind on her payment, she will likely be offered a modification. So it's hard to lose when the media weighs in on your behalf. These are very "media-genic" stories, and PR managers need to recognize that.

For more:
- here's the article

Related articles:
Banks "donating" foreclosed slum properties for demolition  
Moynihan struggles to turn Bank of America around  
No joke: Couple forecloses on Bank of America branch