Allegations over the force placed policies and the practices surrounding them have led to the payout. A federal judge recently signed off on a JPMorgan Chase settlement that will have the lender paying out a minimum of $300,000 to approximately 750,000 mortgage customers who had expensive homeowners insurance forced upon them. Force placed insurance is commonly applied to mortgage borrowers who let their coverage lapse, breaching their contract. When the required homeowners insurance is allowed to lapse by the mortgage borrower, or if they simply stop paying it, the lender…
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Force placed insurance lawsuit causes Citi to pay $110 million
Citigroup Inc. has agreed to pay the money to thousands of homeowners who had been overcharged. According to recent news, Citigroup Inc. has now agreed to a payout of $110 million to thousands of homeowners who had force placed insurance applied to them when the allowed their own coverage to lapse or they stopped making payments. The forcibly charged property coverage came with highly expensive premiums, said a court filing. This trend of force placed insurance lawsuits has been spreading across the United States, as many American insurers and banks…
Read MoreForce placed insurance regulations to be altered in the United States
The FHFA now intends to ban mortgage lenders from being able to receive payments. The Federal Housing Finance Agency (FHFA) is now working to ban mortgage companies from being able to receive lucrative payments in order to arrange for forced placed insurance on behalf of homeowners in certain situations, such as when an existing policy has been allowed to lapse or has gone unpaid, against the agreement of the loan. The U.S. housing regulator is working to stop this controversial payments practice from continuing. Government officials have revealed that force…
Read MoreForce placed insurance settlement reached by Assurant and J.P. Morgan Chase
The agreement that has been reached will require a payment of a total of $300 million to resolve the allegations. Assurant Inc. and J.P. Morgan Chase have now agreed to a settlement in a class action suit against them that will cause them to pay $300 million in order to resolve the allegations against them regarding force placed insurance selling. The claims against the companies had to do with a special type of homeowners coverage applied on behalf of the policyholders. The settlement that has been proposed is among the…
Read MoreForce placed insurance penalties to be paid by Assurant
The amount that the company will be paying will come to an estimated $14 million. Assurant Inc., the largest provider of force placed insurance in the United States, is now facing voluntary penalties of $14 million, following the outcome of an investigation that called the company’s practices into question. This is one of the latest of several similar penalties being faced by insurers with similar practices. Force placed insurance is a completely normal and legal form of coverage in the United States, and is purchased on behalf of a homeowner…
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