Suntrust Bank Mortgage Holders: Have you been forced into paying for an excessive or costly flood insurance policy? If so, you may have legal recourse to recover the additional costs associated with this coverage. Class Action.org is investigating claims that certain mortgage companies have been forcing loan holders to purchase or maintain flood insurance policies that are unnecessary, overly expensive, or otherwise excessive. While Suntrust Bank has not been named among the banks allegedly engaging in these practices, many homeowners who have borrowed from other establishments 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
Potentially, consumers may be able to participate in a flood insurance lawsuit if they were forced or coerced into buying or maintaining:
A flood insurance policy which exceeded federal requirements
A second flood insurance policy after an acceptable policy was refused
More flood coverage than what was required under their mortgage agreements
A second flood insurance policy even though they were already covered by a condominium association or otherwise
In a select number of instances, it has been alleged that 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.