Gilman Law LLP, a leading consumer law firm representing property owners throughout the country who have been victimized by the force placed insurance market, notes that HSBC, Wells Fargo and Bank of America have agreed to settle force placed insurance lawsuits that had accused the banks of overcharging hundreds of homeowners for flood, hazard and wind policies. Though no dollar figures have been attached to the force placed settlements, filings in U.S. District Court, Southern District of Florida, indicate that the banks have agreed to pay refunds to potentially hundreds of property owners throughout the nation. (Purifoy v. Bank of America Corp., 13-1154, Blackburn v. HSBC Bank USA NA, 13-3714)
Gilman Law, LLP, is also representing property owners in similar claims against CitiBank and other lenders. Homeowners who had wind, hazard or flood insurance force placed on their property by American Security, Assurant, HSBC, Wells Fargo or Bank of America are urged to contact the Firm as soon as possible to discuss their legal rights in relation to this settlement. Gilman Law LLP is also prosecuting claims against the lenders/servicers listed below and is also urging any homeowner who may have been victimized by another lender to contact the Firm today, especially if they had a mortgage held by one of the following banks:
- US Bank
- Green Tree
- Capital One/ING
- PNC/National City
If these or another lender held a mortgage on your home and force placed wind, flood or hazard insurance on your property, it is of the utmost importance that you contact Gilman Law LLP today, at 1-888-252-0048 to preserve your right to compensation.
The Force-Placed Insurance Market
Standard mortgage contracts generally allow lenders to impose, or force place, hazard, wind or flood insurance on a property in cases where the owner has allowed required coverage to lapse. But in recent years, it has become apparent that banks, mortgage servicers, and insurers took advantage of this ability and inflated the cost of forced placed insurance beyond justification. These outlandish prices were driven by the commissions (critics call them kickbacks) mortgage companies accepted from insurers for the privilege of arranging force-placed policies. These kickbacks were ultimately passed on to property owners, who according to one New York State investigation, were often charged premiums that were two to ten times higher than those charged for voluntary insurance. At the same time, these needlessly expensive policies almost always offered far less protection than standard policies.
Earlier this year, Gilman Law LLP and its co-counsel were able to reach a settlement in a force placed insurance claim which had accused CitiBank NA of engaging in and profiting from predatory practices that imposed excessive flood and hazard insurance policies on homeowners throughout the country. Under the terms of the $110 million settlement, eligible property owners will be refunded 12.5 percent of their premiums, which represents more than 83.3 percent of the allegedly unlawful commissions that Citi’s affiliate received from its force-placed insurance vendor. (Gordon Casey, Duane Skinner and Celeste Coonan, individually and on behalf of all others similarly situated vs Citigroup Inc., Case No. 12-00820, U.S. District Court, Northern District of New York)
About Gilman Law LLP
Gilman Law LLP, a leading consumer 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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Kenneth G. Gilman, 1-888-252-0048