Coerced into Purchasing Unnecessary Flood Coverage?
Last Updated on June 27, 2017
Attorneys working with ClassAction.org are no longer investigating this matter. The information here is for reference only. A list of open investigations and lawsuits can be viewed here.
HSBC Mortgage Holders: If you were forced or coerced into buying an excessive flood insurance policy, you may have legal recourse. Our website 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 HSBC has not been named among the banks engaging in these questionable practices, many homeowners who have borrowed from other financial institutions have complained that they were forced into paying the high premiums of an unnecessary, second or excessive flood insurance policy.
Excessive, Force Placed Flood Insurance Lawsuits
Any loan holder may be able to participate in a forced placed flood insurance lawsuit if they had to purchase or maintain:
- 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
- A flood insurance policy which exceeded federal requirements
- More flood coverage than what was required under their mortgage agreements
Reportedly, some of the banks who 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.
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