Request Legal Help Now - Free

Advertisement
LAWSUITS NEWS & LEGAL INFORMATION

HSBC Force-Placed Insurance

Were you looking for Forced-Placed Insurance lawsuits?

HSBC Mortgage Corporation faces a lawsuit alleging abusive practices in its use of force-placed insurance. Plaintiffs in the lawsuit allege that premiums on force-placed insurance policies used by HSBC were unreasonably high and involved illegal kickbacks for unnecessarily placed policies. Several force-placed insurance lawsuits have been filed against HSBC and other mortgage lenders

FREE HSBC FORCE PLACED INSURANCE LAWSUIT EVALUATION

Send your HSBC Force Placed Insurance claim to a lawyer who will review your claim at NO COST or obligation.
GET LEGAL HELP NOW

Force-Placed Insurance

hsbcforceplacedinsForce-placed insurance is insurance that a mortgage company or bank places on a property where the homeowner's insurance coverage has lapsed. That insurance is placed on the property to protect the bank or mortgage lender's interests in the property. In other words, if a homeowner cannot provide proof of interest on their property, the bank or mortgage lender can force place an insurance policy on the property, at the homeowner's expense.

Force-placed insurance lawsuits allege illegal and unethical practices in the force-placed insurance industry. Among the allegations are that banks and mortgage lenders receive illegal kickbacks for force placing insurance. Furthermore, plaintiffs allege that because force-placed insurance is not available on a competitive market—homeowners have no say in which policy is used, the premiums are high. Making premiums even higher, they allege is that commissions are paid to banks and mortgage lenders from the insurer and those commissions are charged to the homeowner. Some critics argue that force-placed insurance policies can cost up to 10 times more than traditional insurance.

Plaintiffs also allege that despite premiums on force-placed insurance being much higher than regular homeowners' insurance, the policy often offers less protection for the homeowner. Furthermore, the force-placed insurance policy may cover more than the banks' actual interest in the home, further increasing the rates, and is sometimes applied retroactively. Finally, homeowners allege that when they have shown proof of insurance coverage, it has taken too long to have the force-placed insurance policy off their home.

HSBC Force-Placed Insurance Lawsuit

badfaithinsuranceclaim3.jpg Plaintiffs in an HSBC force-placed insurance lawsuit (case number 2:11-cv-4074-JD) allege that despite having sent HSBC proof that their property was insured, they received a letter stating insurance had been force-placed on their property. The lawsuit alleges that the defendants, "regularly use their right to force-place insurance on property to profit at the borrowers' expense," through kickbacks and redundant charges. Among the redundant charges, according to the lawsuit, are requiring the borrowers to pay for coverage exceeding the amount required to protect the defendant's interest in the property; making policies retroactive to cover time when no damage was done to the property; and force-placing insurance even at a time when the lender's interest in the property was covered.



HSBC Force-Placed Insurance Legal Help

If you or a loved one has suffered similar damages or injuries, please click the link below and your complaint will be sent to a lawyer who may evaluate your claim at no cost or obligation.


Last updated on


ADD YOUR COMMENT ON THIS ISSUE

Please read our comment guidelines before posting.


Note: Your name will be published with your comment.


Your email will only be used if a response is needed.

Are you the defendant or a subject matter expert on this topic with an opposing viewpoint? We'd love to hear your comments here as well, or if you'd like to contact us for an interview please submit your details here.

Request Legal Help Now! - Free