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$3M Settlement Reached in Bank of America Bad Faith Insurance Class Action Lawsuit


This is a settlement for the Bad Faith Insurance lawsuit.

Santa Clara, CA: A $3 million settlement has received preliminary judicial approval, potentially ending a bad faith insurance class action lawsuit pending against Bank of America (BofA). The lawsuit, brought in April 2013, alleges that BoFA withheld monies due on insurance claims. The suit named BofA and its predecessor, BAC Home Loans Servicing LP, which was formerly known as Countrywide Home Loans Servicing LP.

Specifically, the plaintiffs assert their insurers wrote checks for about $20,000 to go toward repairs for significant hail damage, but BofA never produced the funds. The homeowners said the bank violated mortgage agreements requiring it to release proceeds from insurance claims to either allow repairs or reduce outstanding mortgage payments.

In the lawsuit, plaintiffs Cynthia and James Copher claim they provided BofA with all of the information requested and followed up with dozens of phone calls. However, four years on, they still have not received a check from State Farm Fire & Casualty Co. While Bank of America promised to release $10,000 to the Copher' contractor for initial work on the Cophers' house, promising to pay the rest of the funds at a later date, BofA did not produce those payments, despite repeated requests from the Cophers.

Similarly, plaintiffs James and Rosamma Richard claim that they have yet to receive a check from American Modern Home Insurance Co. for damage caused in 2011, by baseball-sized hail.

Under the terms of the settlement, BofA denies any wrongdoing. The bank has agreed to pay $1 million to class members and $2 million to cover the costs of notice and administration of the settlement class.

The suit was brought on behalf of all borrowers who hadn't received insurance claim proceeds from BofA or who didn't have insurance funds applied to reduce their outstanding loans or released to pay for repairs.

The suit also proposed a subclass of Oklahoma property owners whose property insurance money was not applied to the unpaid balance of their mortgages or released to conduct repairs.

A final settlement hearing is scheduled for June 2, 2016. The case is James D. Copher et al. v. Bank of America NA et al., case number 5:13-cv-00353, in the U.S. District Court for the Western District of Oklahoma.

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Published on Feb-10-16


READER COMMENTS

Posted by

on
Bank of america kept almost $4,000 for a check irecieved Why cause they said they are keeping. It ti find out where the money came from

Posted by

on
I had a nice home in Metropolis,Illinois I had my home financed with Country Wide Home Loan Servicing and was forced into insurance on my home even while I already had home owners insurance. I notified the loan company of this and notified the insurance company that I already had insurance on my home. I found that they cancelled my insurance policy with my company and kept there issued insurance policy on my home.
I later had damage to the roof do to a severe storm that came thru the area. I reported it to this insurance company and they done nothing.
I made waves by my calling and calling to thre office over the issue and next thing I knew they raised my locked in interest rate and then called in my home loan causing me to have to go bankrupt. And lose my home as they foreclosed on me...I was not behind any payments and all payments were up to date.

Posted by

on
I had my house financed,,,, with Richton bank an trust ,,, last year Easter Sunday 10 o'clock at night resident called a fire,,was shortly put out ,,I was paying my Insurance through the bank ,,, well I contacted my bank they give me the information to the Insurance company,,,, and then they sent a Insurance adjuster out ,he look ,around just for a little while,,,an told me to get , three carpenter to give him ,estimate of the damage of my home ,,, we'll ever one I talk to said it would be a wild be fore they would be able two come ,,, so finally the Insurance company sent a Lassen contractor out to my residence, he stayed three hours looking at everything that was damaged other than electricity, his estimate was , nearly 30,000 not including electrical work, he sent the estimate to The insurance that had my house insured, no response for days and days no response, so he told me to notify them that he has been sending emails one after another no response, I shortly found out, that the banker at bank took a $6000 dollar check without me knowing,,,an still don't what he did with the check ,,, I got friends temporary fix my home,,, shortly he foreclosed on my house ,,, he sold it once a sale ,,,it was paid for the buyer ,,an was touck back sold 30 days later,,,, because I stop paying on it because touck the Insurance money and I have no idea what he did with money never fix ing my home ,,, I just something wrong about what he did to me ,,, then I heard he had stole money from someone Account,,,,

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