Excessive Force Placed Hazard Insurance?
Last Updated on June 26, 2017
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At A Glance
- This Alert Affects
- Consumers who had hazard insurance forced placed on them by their bank or mortgage company.
- Company(ies)
- M&T Bank, Fifth Third, Dovenmuhle, Provident Funding, Flagstar and Capital One
It has been alleged that certain lenders are purchasing force placed insurance for their own financial benefit and at rates which exceeded that of the insurance the borrower could have purchased themselves. Additionally, some forceplaced hazard insurance lawsuits are claiming that the banks are receiving kickbacks for these purchases, the cost of which is expensed to the borrower.
Force Placed Hazard Insurance Lawsuits Allege Backdated Coverage, Kickbacks
A number of banks have been hit with force placed hazard insurance lawsuits alleging that the lenders are abusing their authority when they require borrowers to carry excessive hazard insurance policies. Bank of America’s borrowers are claiming that the bank force placed hazard, also known as fire, insurance even when their loan documents did not require it. They are further alleging that the bank is backdating or issuing retroactive insurance to collect premiums for time periods which have already passed or duplicating coverage by forcing insurance policies right after the termination of the property owner's coverage.
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