"Forced-Placed Insurance" Practices from Mortgage Lending Banks
ABBEY SPANIER, LLP IS INVESTIGATING COMPLAINTS RELATING TO UNFAIR "FORCED-PLACED INSURANCE" PRACTICES
In order to obtain a mortgage, lending banks usually require homeowners to maintain insurance on their property. If a homeowner fails to maintain his/her required insurance, pursuant to the terms of the mortgage agreement, the bank is entitled to forcibly place insurance on the property (i.e. purchase insurance for the home and then charge the homeowner/borrower the full cost of the premium). Several lawsuits have been brought by homeowners against certain banks alleging that the forced placed insurance practices are unfair because their lender: (i) purchased exorbitant insurance coverage that costs far greater than the homeowner's previous coverage; (ii) received commissions or kick-backs from the insurer for the forced-placed coverage; (iii) billed homeowners for additional coverage that was not required under their mortgage agreement; and (iv) allowed the homeowner's existing coverage to lapse without providing notice that it would purchase force-placed insurance.
Abbey Spanier is a nationally recognized law firm specializing in large, complex litigation in the fields of securities, mergers and acquisitions, corporate governance, consumer protection, unfair employment practices and antitrust. The Firm has litigated thousands of cases in both state and federal courts throughout the United States. If your bank/lender has engaged in unfair business practices relating to forced-placed insurance and you would like to discuss our investigation, please tell us your story
Richard B. Margolies, Esq.
Nancy Kaboolian, Esq.