By now we’re all familiar with the lawsuits pending against several major U.S. banks over what is called “forced placed insurance” or “lender placed insurance.” The practice seems simple enough — if you don’t maintain proper insurance on your house or business, the lender, i.e., the bank, will force the insurance on you and send you the bill. Unpaid insurance premiums frequently result in a default on the mortgage, forcing you into foreclosure and bankruptcy.
So far, Bank of America, Wells Fargo, Citibank and H.S.B.C. have settled class action lawsuits for hundreds of millions of dollars. But has the practice changed at other banks.
The following banks have not be sued over the practice, and thus appear to continue to engage in what has been described as an unfair and deceptive business practice:
If you or someone you know has received a forced place insurance notice (even if you’re already in foreclosure, bankruptcy or you’ve been through a foreclosure or bankruptcy), we would be interested in speaking with you about you legal rights.