Bloomberg News (9/10, Smythe) reports that JPMorgan and insurers have “reached a $300 million settlement with property owners who accused the companies of overcharging for hazard insurance.” JPMorgan, Assurant Inc. and other insurers will pay “refunds valued at 12.5 percent of annual premium costs to homeowners who had the policies placed on their properties by the bank starting in January 2008,” according to documents filed in a Miami Federal court. As also reported by Reuters (9/9), the suit said that the improper practices led to gains by JPMorgan and Assurant of more than $1 billion since 2008.
Banks such as JPMorgan, Wells Fargo, Bank of America, Citibank, GMAC and HSBC Mortgage Corporation have been under increasing regulatory scrutiny over forced-placed insurance.
As noted by the Wall Street Journal (9/10, Scism), the proposed settlement is one of the first and largest in several suits over “forced-place” insurance. This includes a federal class action lawsuit against Wells Fargo in the United States District Court of Northern Ohio, Western Division brought by the Class Action Attorneys at Zoll, Kranz & Borgess. The class action complaint is titled Swain v. Wells Fargo Bank, et al., and alleges that the bank committed an unlawful scheme involving force-placed insurance. Specifically, Wells Fargo scammed unsuspecting homeowners by demanding that they pay for excessive flood insurance for their property that was not required by their mortgage agreement or the law. The attorneys at ZKB are also investigating similar alleged misconduct by other banks and mortgage servicers.
If your bank or lender force-placed an insurance policy on your home, your bank or lender may have treated you unfairly and you may be able to join a class action lawsuit. Contact our firm by filling out our online contact form, by calling class action attorneys David Zoll or Pamela Borgess via phone toll-free at (419) 841-9623, or by email to [email protected] or [email protected].
Zoll, Kranz & Borgess, LLC – Class Action Lawyers