Forced-Placed Insurance Lawsuits

Cincinnati Attorney: Compensation for Victims of Forced-Placed Insurance Fraud

Numerous class action lawsuits have been filed against major mortgage lenders and lender-placed insurance providers over forced-place insurance fraud. Forced-placed insurance, also known as “creditor-placed” or “lender-placed” insurance is an insurance policy placed by a bank or mortgage servicer on a home when a homeowner’s own property insurance has lapsed or where the bank deems a homeowner’s insurance insufficient.

All mortgages require borrowers to purchase proper homeowners insurance on their property. If a policy lapses or is canceled, most mortgages allow a lender to purchase insurance for the home and “forced-placed” a new policy.

There are instances, however, when insurers and lenders earn huge profits at the expense of homeowners. Typically, the forced-placed insurance premiums are much higher than the property insurance the borrower can purchased on their own. The policy can be more expensive, and may also be quite limited in coverage.

Settlements in forced-place cases have involved millions of homeowners nationally and provided injunctive changes and recovered much-needed funds for homeowners.

Joe Lyon is a highly-rated and experienced Cincinnati, Ohio attorney, well-versed in the economic impact that insurance fraud has on individuals and businesses. 

Lenders & Insurance Companies Take Advantage of Homeowners

Attorneys have called forced-placed insurance “reverse competition,” in which lenders choose the coverage provider and amount. Regardless of how expensive it is, the consumer is obligated to pay premiums. Reverse competition drives up premium prices for consumers, benefiting both lenders and insurance companies, who may be working in kickbacks behind the scenes.

Lawyers have come to settlement agreements with lenders and insurance companies who have acted fraudulently and charged inflated premiums for force-placed insurance. Class-action suits allege breaches of contract, breach of implied covenant of good faith and fair dealing, unjust enrichment, breach of fiduciary duty, and violations of state and federal Deceptive and Unfair Trade Practices.

Lawsuits also state that some mortgage agreements artificially inflate borrowers’ premiums with costs well beyond the cost of normal coverage. Charged amounts may be excessive for force-placed insurance hazard, flood, flood-gap, or wind coverage in with homes in foreclosure, negotiated short sales, deeds in lieu of foreclosure, or modified loan terms.

Forced Placed Insurance Lawsuits

If you have been taken advantage of as a homeowner, gather detailed proof of the new insurance and send relevant documents to an experienced lawyer to review. The Lyon Firm takes these matters very seriously.

Improper, fraudulent, misleading procedures and excessive charges may have incurred from Forced-Placed Insurance from lenders, and can be basis for taking legal action. When banks and insurance companies act in an unreasonable manner, they may be held accountable. Some companies currently under investigation for forced-placed insurance malfeasance include:

• Residential Mortgage, LLC
• Lakeview Loan Servicing
• Freedoms Mortgage Corp.
• Pingora Loan Servicing
• Matrix Financial Corp.
• Provident Funding
• Quicken Loans
• Amerihome Mortgage
• Arrest Bank
• Dovenmuehle Mortgage
• com
• Shell Point Mortgage Servicing
  

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Most Ohio homeowners and policyholders have very busy lives and cannot spend long hours negotiating with insurance companies and banks over forced policies. The Lyon Firm represents policyholders throughout Ohio in forced-placed litigation on behalf of individuals and businesses involved in coverage disputes.

We seek compensation for our clients, as well as punitive damages against unethical and unlawful banks and insurance companies.

The Lyon Firm has experience engaging insurance companies and recovering excessive forced placed insurance premiums. If you have questions about the legal remedies available to receive compensation from a fraudulent insurance company in Ohio, contact The Lyon Firm at (800) 513-2403. You will speak directly with Mr. Lyon, and he will help you answer these critical questions.