A federal class action lawsuit claims Wells Fargo Bank (WFC) forces borrowers to take out too much flood insurance on their homes in order to pocket commissions and kickbacks.
According to the Wells Fargo class action lawsuit:
“[Wells Fargo] unfairly, unjustly, and unlawfully forced Plaintiff and other borrowers to purchase and maintain flood insurance for their property in amounts greater than required by law, greater than required by their mortgage agreements, and greater than Defendants’ financial interest in their property, without any reasonable basis or justification.”
Furthermore, the class action continues, “[Wells Fargo] unfairly, unjustly, and unlawfully profited from force-placing flood insurance on Plaintiff’s property and the property of other borrowers, by charging Plaintiff and other borrowers amounts in excess of the net costs incurred by Defendants for such flood insurance and by accepting kickbacks, commissions, or other compensation for themselves and their affiliates in connection with force-placed (also known as lender-placed) flood insurance.”
The Wells Fargo flood insurance class action lawsuit is brought on behalf of the following classes:
Nationwide Flood Insurance Class. All persons nationwide who have or had a home loan or line of credit with Wells Fargo and were required by Wells Fargo or its agents or affiliates to purchase or maintain flood insurance on their property in the United States.
Nationwide Lender-Placed Insurance Class. All persons who were charged for lender-placed flood insurance by Defendants and/or paid such charges to Defendants, in whole or in part, within the applicable limitations period.
Pennsylvania Putative Class. All persons who have or had a loan or line of credit with Defendants secured by their residential property and were required by Defendants to purchase or maintain flood insurance on their property in the State of Pennsylvania within the past six years.
A copy of the Wells Fargo Flood Insurance Class Action Lawsuit can be read here.
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