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Centennial Bank Force-Placed Insurance Settlement

Centennial Bank is spending a maximum of $730,000 to settle a class action alleging it engaged in illegal conduct relating to charges for force-placed insurance on real property in the US or its territories. The complaint alleged breach of contract, breach of the covenant of good faith and fair dealing, and unjust enrichment.  Read more

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Sound Credit Union Collateral Protection Insurance Washington Settlement

This settlement resolves a class action against Sound Credit Union, alleging it violated the Washington Consumer Protection Act and Washington common law. The complaint brought suit against Sound for charging borrowers for collateral protection insurance premiums, not fully refunding unearned premiums, and charging unauthorized fees and interest.  Read more

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Bank of America Excessive Fees on Defaults Class Action

This class action brings suit against Bank of America, NA (BOA) and Integon National Insurance Company alleging they conspire “to maximize fees assessed on borrowers’ accounts when they are behind on their payments.” BOA, the complaint alleges, requires things like repeated and unnecessary property inspections and force-placed flood insurance. These are added to the amount  Read more

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Bank of America Unnecessary Property Inspections Class Action

On its first page, the complaint alleges that Bank of America, NA (BOA) “services home loans according to uniform practices designed to maximize fees assessed on borrowers’ accounts when they are behind on their payments.” The practices at issue? Charging customers for multiple unwarranted “property inspections” and for unneeded force-placed insurance.  Read more

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Rushmore Loan Kickbacks Alleged for Forced-Placed Insurance Class Action

Under certain circumstances, mortgage borrowers may be forced to pay for insurance policies chosen by their mortgage lender or servicer. This force-placed insurance (FPI) arrangement is not illegal. However, the complaint for this class action questions the FPI practices of Rushmore Loan Management Services, LLC, however, alleging that the company receives “an unearned kickback designed  Read more

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Bank of America Force-Placed Unneeded Flood Insurance Class Action

When a lender provides a mortgage for a property, it has a right to insist that the borrowers maintain adequate insurance to protect its investment. The complaint for this class action alleges that Bank of America, NA (BoA), however, forces borrowers to take flood insurance that they do not need, and that the premiums of  Read more

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Wells Fargo Collateral Protection Insurance Settlement

Four defendants—Wells Fargo Bank, NA, Wells Fargo & Co, National General Holdings Corp., and National General Insurance Company—have decided to pay a little less than $400 million to settle a class action about their auto loans. The complaint alleged that the lenders unlawfully placed collateral protection insurance (CPI) policies on some auto loan accounts, and  Read more

Shellpoint Mortgage Servicing LPI Settlement

New Penn Financial, LLC, which does business as Shellpoint Mortgage Servicing, has elected to settle a class action on the subject of LPI. LPI, or lender-placed insurance, is hazard, flood, or wind insurance placed on a borrower’s property to protect the value of the property when the borrower’s own policy lapses or when the borrower  Read more

Specialized Loan Servicing Lender-Placed Insurance Settlement

This settlement resolves a class action concerning lender-placed insurance (LPI) placed on mortgaged homes by Specialized Loan Servicing, LLC (SLS). LPI is placed on a mortgaged property when the borrower’s insurance lapses or if the lender believes that the borrower’s insurance in inadequate. With LPI, the borrower pays the loan servicer for the premiums and  Read more

Caliber Home Loans Lender-Placed Insurance Settlement

This settlement resolves a class action concerning lender-placed insurance (LPI) placed on mortgaged homes by Caliber Home Loans, Inc. LPI is placed on a mortgaged property when the borrower’s insurance lapses or if the lender believes that the borrower’s insurance in inadequate. With LPI, the borrower pays Caliber for the premiums and Caliber remits the  Read more