As much as 15 percent or more of premiums collected by force-placed insurers flow to the banks through insurance agents affiliated with the banks, state investigators found.
Boston, MA (PRWEB) February 01, 2013
Force-placed insurance lawsuits against CitiMortgage and other lenders are moving forward in federal court, according to Gilman Law LLP. The firm is now investigating claims on behalf of consumers who have allegedly been charged exorbitant rates for force-placed insurance policies by:
- American Security
- Bank of America, Case No. 7:11-cv-07955 (S.D. New York)
- Wells Fargo, Case No. 3:12-cv-04026 (N.D. California)
- HSBC, Case No. 2:12-cv-01542 (W.D. Washington)
- GMAC (http://www.law360.com/articles/359762/wells-fargo-faces-new-force-placed-insurance-class-action)
Individuals who have been charged for force-placed insurance policies, including homeowners, hazard, flood and wind policies, should contact Gilman Law LLP immediately to discuss their legal rights and prevent their claims from being time-barred by their state’s statute of limitations.
A bank or mortgage servicer is legally entitled to force-place insurance on a homeowners’ property when a borrower has failed to maintain insurance as required by the terms of the mortgage contract. However, a recent investigation conducted by the New York Department of Financial Services raised serious questions about the cost of such policies, as well as red flags regarding a lack of competition in the market; the fact that force-placed insurance has become both a major profit center for both banks and insurers; and “tight relationships between banks, their subsidiaries and insurers.” As much as 15 percent or more of premiums collected by force-placed insurers flow to the banks through insurance agents affiliated with the banks, state investigators found. [http://www.dfs.ny.gov/insurance/hearing/fp_052012_testimony.htm
A new force-placed insurance action is now proceeding in federal court against CitiMortgage, Citigroup, American Security, and Assurant, Inc. The claim alleges CitiMortgage, Citigroup and other Defendants engaged in deceptive practices when force-placing insurance policies on borrowers, including violations of the Truth in Lending Act, the RICO Act, and other consumer protection laws. (1:12-cv-243748, S.D.Fla)
In November, Gilman Law LLP entered an appearance on behalf of a plaintiff in a force-placed insurance lawsuit against CitiMortgage, and successfully defended against a Motion to Dismiss, as well as a Motion for Sanctions the bank filed against the plaintiff for proceeding with her lawsuit. The plaintiff, who claims she was the victim of CitiMortgage’s predatory force-placed insurance practices, had been forced to pursue a pro se action against the bank. In rejecting both of CitiMortgage’s motions, Judge Spencer Eig of the Eleventh Judicial Circuit of Miami-Dade County, Florida, allowed the claim against CitiMortgage to proceed with the assistance of Gilman Law LLP. (Case No. 11-185185-CA)
The new scrutiny being placed on the force-placed insurance market may provide an opportunity for homeowners victimized by questionable practices to pursue restitution. If you believe your lender engaged in unfair practices when imposing a force-placed insurance policy on your property, it is vital that you retain legal help now. The consumer protection lawyers at Gilman Law LLP are offering free force-placed insurance lawsuit evaluations to homeowners nationwide. To discuss your legal options, please CALL TOLL FREE (888) 252-0048.
About Gilman Law LLP
Gilman Law LLP, a leading national law firm with offices in Florida and Massachusetts, has been recognized for delivering successful results to their clients across a broad range of claims stemming from consumer product injury, mass tort, and class action lawsuits. For over 32 years, the Gilman Law LLP team of highly experienced lawyers has earned renown for tireless work on behalf of their clients on many of today’s most challenging and important legal issues.
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