News on U.S. government agencies, U.S. politics, companies doing business with U.S. federal government. Read U.S. national and local news. This site is not affiliated with United States Government.
(USGovernment-News.Com, May 21, 2013 ) New York, NY – The attorneys working with ClassAction.org are investigating potential lawsuits involving force-placed insurance, also known as lender-placed insurance. When a property owner allows their insurance to lapse, or fails to maintain their insurance as outlined by their mortgage agreement, the bank or mortgage servicer is permitted to impose or “force-place” insurance on the home; however, it has been alleged that certain banks and mortgage lenders have abused their authority to force-place insurance, costing homeowners thousands of dollars in unnecessary, excessive and duplicative coverage.
If your bank or mortgage lender force-placed insurance, such as flood, homeowner’s or wind insurance, on your property, and you suspect this coverage was excessive or unnecessary, you may be entitled to financial compensation. To learn more about your potential legal rights and to receive a free, no obligation case review, please visit http://www.classaction.org/forced-placed-flood-insurance.html today.
Banks and mortgage lenders typically require borrowers to maintain a certain level of insurance on their property. If the borrower allows their insurance to lapse, their lender is legally entitled to purchase insurance for the property and charge the borrower for the full cost of the premium. Allegations have surfaced that banks are engaging in unfair or deceptive force-placed insurance practices because they 1) backdated insurance policies, thereby requiring homeowners to pay for retroactive coverage for time periods for which no risk of loss exists; 2) allowed borrowers’ coverage to lapse without providing proper notice that they would force-place insurance; 3) force-placed duplicative insurance on property owners who were already insured through a condominium association or otherwise; 4) and/or required homeowners to maintain coverage in excess of federal requirements and/or the amount required to protect the lenders’ interest in the property. It has also been alleged that the banks are receiving kickbacks for these purchases.
Unfortunately, the practices of force-placed insurance can cause further complications for already-struggling homeowners. It has been reported that some homeowners may be trying to save money by allowing their insurance to lapse, only to be forced to pay for a policy which may cost up to ten times as much as coverage they could have purchased themselves. In addition, this coverage - which is designed to protect the lender, not the policy owner - typically offers less protection to the borrower. In some cases, despite their high premiums, these policies may not insure the full value of the home and may not cover the contents of the property.
Several major banks have been hit with class action lawsuits alleging that they engaged in deceptive and unfair practices in regard to lender placed insurance. As these cases move forward, our attorneys continue to investigate the force-placed insurance practices of banks and mortgage lenders across the country. If you suspect you have been taken advantage of in regard to your hazard, wind/storm, car or flood insurance, please visit ClassAction.org for a complimentary evaluation of your claim.
About Class Action.org
Class Action.org is dedicated to protecting consumers and investors in class actions and complex litigation throughout the United States. Class Action.org keeps consumers informed about product alerts, recalls, and emerging litigation and helps them take action against the manufacturers of defective products, drugs, and medical devices. Information about consumer fraud issues and environmental hazards is also available on the site. Visit http://www.classaction.org today for a no cost, no obligation case evaluation and information about your consumer rights.
We are pleased to offer you this exciting, new, and entirely free professional resource. Visit our Free Industry resource center today to browse our selection of 600+ complimentary Industry magazines, white papers, webinars, podcasts, and more. Get popular titles including:
