Forced Placed Insurance

Selene Financial Force-Placed Insurance Settlement

Selene Finance has agreed to settle a class action alleging that it charged excessive rates for force-placed insurance and placed it in a manner that enabled it to received kickbacks from the insurer. Force-placed insurance, or lender-placed insurance, is insurance placed on a property that is mortgaged or that carries a home equity line of  Read more

Avatel Technologies Force-Placed Insurance on Leased Equipment Class Action

Force-place insurance, also known as lender-placed insurance (LPI), is often found in connection with mortgages, when the borrower fails to maintain an adequate policy and the lender force-places one to protect against property losses. In this case, the insurance was placed on voice, data, or video equipment leased through financing, but the allegations the complaint  Read more

Fay Servicing Force-Placed Insurance Settlement

Fay Servicing has agreed to settle a class action alleging that when it required residential borrowers to have LPI (lender-placed or force-placed insurance), it received an unauthorized benefit, causing the premiums for the insurance to be higher than necessary. At issue are policies from Southwest Business Corporation, American Modern Insurance Group, Inc., American Modern Home  Read more

Carrington Mortgage Services Force-Placed Insurance Settlement

Carrington Mortgage Services has agreed to settle a class action alleging that whenever the company required a borrower to have LPI (lender-placed insurance, also known as force-placed insurance) it received kickbacks or unauthorized benefits that raised the cost of the insurance.  The case concerns LPI issued by American Modern Insurance Group, Inc., American Modern Home  Read more

Residential Credit Solutions Forced-Placed Insurance Settlement

Mortgage lender Residential Credit Solutions has agreed to settle a class action alleging that when it required borrowers to have LPI (lender-placed insurance, also known as force-placed insurance) on a mortgage or home equity loan, RCS placed the insurance in a manner that caused it to receive unauthorized benefits, unfairly raising the cost of the  Read more

M&T Bank Mortgage Forced-Placed Insurance Scheme Class Action

The complaint alleges that M&T has an arrangement with insurance company ASIC under which ASIC is M&T’s exclusive provider of FPI and also performs mortgage-servicing functions. In exchange, the complaint alleges that ASIC pays M&T kickbacks on FPI, which violates provisions in the borrowers’ mortgage contracts. But this complaint alleges that there’s an even more  Read more

Wells Fargo Fraudulently Force-Placed CPI Auto Insurance Class Action

When plaintiff Paul Hancock bought a vehicle in Februrary 2016, the complaint for this class action says, he financed it with a loan from Wells Fargo and purchased an auto insurance policy through Allstate. However, in May 2016, the complaint says, Wells Fargo force-placed an insurance policy on his vehicle and charged him $598 for  Read more

PHH Mortgage Corporation Lender Force-Placed Insurance Settlement

LPI (lender-placed insurance) is placed on a property by a lender when a borrower’s insurance policy lapses or when the borrower does not maintain an acceptable homeowner insurance policy. When PHH Mortgage placed an LPI policy on a property, it paid the premiums to the insurer and then charged the borrower for the premiums. This  Read more

PennyMac Force-Placed Insurance Settlement

This settlement settles a class action involving lender-placed insurance (LPI), that is, insurance for hazard, flood, or wind, that is placed on a borrower’s property to protect both borrower and lender. This “force-placing” is usually done when the borrower’s insurance policy lapses or when the borrower doesn’t maintain an insurance policy that is acceptable to  Read more

Seterus Force-Placed Insurance Class Action Settlement

The plaintiffs in this lawsuit allege that when a borrower was required to have insurance for his or her property pursuant to a residential mortgage or home equity loan or line of credit, and evidence of acceptable coverage was not provided, Seterus would place insurnace in a manner such that they allegedly received an unauthorized  Read more