Request Legal Help Now - Free

Advertisement
LAWSUITS NEWS & LEGAL INFORMATION

$110M Citigroup Forced-Placed Insurance Class Action Settlement Reached


This is a settlement for the Forced-Placed Insurance lawsuit.

New York, NY: Citigroup will pay $110 million to settle a forced-place insurance class action lawsuit brought by a homeowner who alleged he was forced to pay expensive property insurance premiums.

According to the terms of the settlement, class members who were charged for force-placed hazard insurance will receive 12.5 percent of the premium upon submitting a claim. The proposed settlement agreement, which requires final court approval, also requires Citigroup to stop accepting commissions for force-placed insurance for a period of six years from the effective date of the settlement.

According to report by Reuters.com one of Citi's unit that deals with the insurance received a 15 percent commission on hazard insurance premiums during the proposed settlement class period.

Additionally, Citi will refund 8 percent each of force-placed flood insurance premiums and force-placed wind insurance premiums, even though no commissions were paid to Citi or its affiliates on flood or wind insurance.

According to the lawsuit, the plaintiffs were charged roughly $758 million in hazard insurance premiums and $173 million in flood insurance premiums.

The case is Gordon Casey, Duane Skinner and Celeste Coonan, individually and on behalf of all others similarly situated vs Citigroup Inc, Case No. 12-00820, U.S. District Court, Northern District of New York.

Legal Help

If you have a similar problem and would like to be contacted by a lawyer at no cost or obligation, please fill in our form.
Published on Feb-6-14


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