According to South Florida Business Journal (5/16/13), the force-placed insurance lawsuit alleged Wells Fargo forced coverage on them when their homeowners’ insurance policies lapsed. That coverage, provided by QBE Insurance, allegedly had extremely high premiums. Court documents claim the homeowners paid insurance premiums of approximately $75 million. They further claimed Wells Fargo insurance agents received a commission for business sent to QBE.The Sun-Sentinel (5/17/13) reports that because of force-placed insurance, homeowners who did not miss any mortgage payments had their homes foreclosed on because the monthly insurance payment was too high. One of the plaintiffs in the lawsuit reportedly had monthly payments of $20,000 a month because of force-placed insurance fees.
Although Wells Fargo agreed to the settlement, it has not admitted to any wrongdoing in the lawsuit. Approximately 24,000 homeowners were included in the class action, which was scheduled to go to trial in July.
Wells Fargo is not the first company to face consequences for force-placed insurance. Assurant Inc reportedly agreed to pay $14 million in penalties earlier this year for its force-placed insurance practices. The penalties will be paid to the State of New York, which launched an investigation into the company’s practices.
READ MORE FORCE-PLACE INSURANCE LEGAL NEWS
That does not help homeowners who have been forced into foreclosure because of the allegedly high premiums on force-placed insurance. In some cases, force-placed insurance can cost up to 10 times a voluntary insurance policy, but with much less coverage.
Critics of the insurance call it price gouging, and claim insurance companies are profiting off people’s financial woes. They also point to commissions and fees banks receive when they assign force-placed insurance to homeowners.
Homeowners are fighting back against what they say are unethical and illegal policies by filing lawsuits such as the one against Wells Fargo. Meanwhile, insurance regulators are looking into the practice to ensure consumers are protected.
READER COMMENTS
giger Herman ,Captain HS25
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Terry Dale DeMoss
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giggig24
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the propertry , continue on and on ....until US Marshalls finally walk up to these CEO's with their annual take home incomes of 15-25 million a year. Hope the bail is several Billions. Go in public records Broward county ,look up CEO Mr. Gregory DeChurch, and learn how deeply he afilliated (F.S.forbits "rebating,collusion,excess rates etc). is sitting in a wellsfargo Villa in FL . He is just a strawman CEO from WellsFargo to play the "independant " force-place insurer.
hope the punitive damage is the amount owed on the incriminated object plus refund of all late fees ,injuries(emotional trauma,depression etc.) all gauged collected funds.
If it's not PONZI it is in Florida still an illegally operation (mo license was obtained and homeowners were not disclosed that they are participating in such foul gambling activity)of Lotterygambling with a win/loss ratio not permittede by F.S.
giggig24
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After inspection they had a fat work order in the house 40k to 120k . Refuse the inspector ,like in my case costs the high insurance 120k
if i do the math over the lifetime of my 30 yrs.
Gauging, absolute sytematic rip off, criminal charges will be filed to. 19 Million settlement is a drop in the ocean, for what they have done with the homeowners in Florida.It was a win to win situation for BoA and Wells.People were struggling to make these monthly payements, they did not wanna loose theri home and their downpayement.Tremendious phychological stress went onto those victims, in CA one judge awarded pain and suffering in high amount on top of getting the house as considered paid off.
It was not force aplace insurance , it was force to loose house and downpayement, so they can take the housing and make section 8 housing and have the state pay for regularly. I am a victim too, when i look for insurance in South Florida,one of the tripwire questions is
'HAVE YOU BEEN TERMINATED BEFORE?" AND IF YES, THEY will go to the high rate immediately.
I hope in July the Miami Judge will pick up the grand bloc of the victime criminaal and civil, have those homeowners and the forclosed compensated adequately.It may mean bankrupcy for these insurers and even for the major banks.Washington mutual e.g. is bankrupt.
If you find WAMU housing , go ahead and file adverse possession before 1st July 2013 , before the new version comes into effect.
This bankrupcy judge will never work off the 7 billion WAMU in 7 yrs,. and you get the title , free housing for the ones with courage and legal knowledge.
Roxanne Samskar
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