Countrywide Mortgage Holders: If you were forced or coerced into purchasing excessive flood insurance coverage, you may have legal recourse. Class Action.org is investigating claims that certain banks have been forcing borrowers to buy or maintain flood insurance policies that are unnecessary, overly expensive, or otherwise excessive. While Countrywide has not been named among the mortgage companies engaging in these practices, many homeowners who have borrowed from other banks have complained that they were forced into paying the high premiums of an unnecessary, second or excessive flood insurance policy.
If Countrywide or any other bank forced you into purchasing or maintaining an overly expensive, excessive or second flood insurance policy, you may be able to seek compensation for the high premiums paid out for this insurance.
Force Placed Flood Insurance Lawsuits
Any mortgage holder may be able to participate in a forced placed flood insurance lawsuit if they had to purchase or maintain:
A flood insurance policy which exceeded federal requirements
More flood coverage than what was required under their mortgage agreements
A second flood insurance policy after an acceptable policy was refused
A second flood insurance policy even though they were already covered by a condominium association or otherwise
In some instances, it has been alleged that banks which forced placed valueless flood insurance on mortgage holders received kickbacks for these purchases, the cost of which was added to the mortgage balance, deducted from their home equity account or otherwise expensed to the borrower.
Forced Placed Flood Insurance Complaints
If your bank unnecessarily forced placed flood insurance policy on your home or condo, you may have legal recourse to seek financial compensation for damages.