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PNC Bank NA Settles Forced-Place Insurance Lawsuit for $32.3 Million

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Miami, FLPlaintiffs embroiled in a Lender insurance lawsuit against PNC Bank NA will have the opportunity to avoid the rigors of a trial and still receive what has been described as an excellent compensatory agreement following final approval of a settlement worth $32.3 million.

The settlement will benefit some 130,000 plaintiffs who allege they were hit with hazard, flood-gap and/or lenders insurance against wind damage that was both excessive, expensive and provided less coverage than standard policies, or so it is alleged. What’s more, plaintiffs alleged in their Force-placed insurance lawsuit that various kickbacks were involved, serving to further drive up the costs to homeowners.

According to court documents, plaintiffs who had mortgage agreements with PNC Bank NA noted that the bank required homeowners to maintain hazard, wind and on occasion flood insurance on the mortgaged property. Agreements also provided PNC Bank with the right and obligation to force-place coverage on the property if it were determined that existing insurance coverage was either inadequate or had lapsed.

The agreements indicated that the financial obligation for the Force-Place Insurance would be the responsibility of the homeowner.

While the capacity for a lender to ensure adequate insurance to protect the investment is perfectly legitimate and without debate, plaintiffs note that mortgage agreements are alleged to have included language that suggested the cost of coverage could significantly exceed any cost associated with a homeowner’s voluntary coverage.

That opens the barn door for excessive forced-placed insurance terms. And it is alleged that excessive fees resulted. It is alleged that plaintiffs not only endured having Lender insurance forced onto their properties, fees are also alleged to have included kickbacks that insurance companies allegedly paid to PNC for referrals, and for services that were below cost.

A number of other Forced-Placed Insurance Lawsuits were settled in similar fashion in recent months, paving the way for final approval of the $32.3 million settlement in the PNC Bank NA case.

The plaintiff’s motion for final approval, submitted in late January, noted “the $32.3 million in monetary relief constitutes 50 percent to 100 percent of the best-case scenario damages recoverable by the class had the parties proceeded to trial.

“This result is all the more extraordinary because it involved the resolution of complex issues against a rising tide of adverse decisions from federal district and appellate courts - decisions class counsel would certainly distinguish, but their opponents would just as vigorously assert,” their motion said.

Lead plaintiff in the lenders insurance class-action lawsuit is Enrique Montoya. The Force-Place Insurance class action is Enrique Montoya et al. v. PNC Bank NA et al., Case number 1:14-cv-20474, in the US District Court for the Southern District of Florida.

READ ABOUT FORCE-PLACE INSURANCE LAWSUITS

Force-Place Insurance Legal Help

If you or a loved one have suffered losses in this case, please click the link below and your complaint will be sent to an insurance lawyer who may evaluate your Force-Place Insurance claim at no cost or obligation.

READER COMMENTS

Posted by

on
excessive overdraft fees by pnc for a senior on limited income

Posted by

on
We are very happy that Banks, PNC, Wells Fargo, JP Morgan , and U S Bank National Association will not get away with forced place insurance. We need your attorneys in Hawaii to help us. The Banks listed here were all part of the transfers of assignments of mortgages and purported allonge. Please forward this message to an attorney who mights be interested in representing us in a civil suit. Our bank returned our checks in early April 2011 during the investigations by OCC and consent orders. Please help

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