JPMorgan Chase Homeowners Insurance Class Action Lawsuit
By Kimberly Mirando
The Chase Bank class action lawsuit alleges that throughout the class period, Chase engaged in unlawful, abusive and unfair practices with respect to force-placed insurance, including receiving fees, payments, commissions, improper reinsurance premiums and/or other things of value from providers of force-placed insurance; providing force-placed insurance from their own affiliates at a substantial, improperly high cost to the borrower; and forcing borrowers to pay for unnecessary insurance.
According to the class action lawsuit:
“In the event that borrowers fail to maintain their hazard insurance policies, rather than attempt to maintain delinquent borrowers’ existing policies, Defendants commonly choose to replace borrowers’ insurance policies with more expensive ones, known as ‘force-placed’ insurance policies. Such policies provide less coverage and are substantially more costly than the borrowers’ original policies, while providing lucrative financial benefits to servicers and/or their affiliates. Further, such policies often provide unnecessary or duplicate coverage, in that they are improperly backdated to collect premiums for time periods during which the mortgagor has absolutely no risk of loss.”
The Chase homeowners insurance class action lawsuit is brought on behalf of a nationwide class of anyone who’s ever had a residential mortgage loan or line of credit with JPMorgan, Chase Bank or Chase Home Finance and had hazard insurance force-placed upon the secured property by the bank between June 16, 2007 and the final date of this action. It also includes a subclass of all California residents who had the same unlawful action taken against their California property.
The Chase class action lawsuit is seeking compensatory, consequential and general damages; restitution; court fees, and more for violating the Real Estate Settlement Procedures Act (RESPA), breach of contract, violating California’s Unfair Competition Law and Unjust Enrichment.
A copy of the JPMorgan Chase Bank Forced-Placed Insurance Class Action Lawsuit can be read here.
The case is Patricia McNeary-Calloway v. JPMorgan Chase Bank, N.A. and Chase Bank USA, N.A., Case No. 11-cv-3058, United States District Court, Northern District of California.
Updated June 23rd, 2011
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