Forced Placed Insurance
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
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
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
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
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
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
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
