Anne Bucher  |  May 27, 2014

Category: Closed Class Actions

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This settlement is closed!

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Citibank class action settlement

Citibank NA has agreed to settle class action lawsuits alleging Citibank and CitiMortgage Inc. (collectively, “Citi”) violated the legal rights of borrowers by unlawfully forcing borrowers to carry excessive flood or hazard insurance. Under the terms of the proposed $110 million Citibank class action settlement, eligible Class Members will receive refunds for the force-placed insurance premiums charged by Citi.

The proposed Citibank class action settlement will resolve two class action lawsuits filed over Citi’s force-placed insurance practices. One of the class action lawsuits alleges that Citi violated the legal rights of borrowers who reside in flood zones by unlawfully forcing them to carry excessive flood insurance coverage for their property and by improperly profiting from the force-placement of flood insurance. The second class action lawsuit alleges Citi violated borrowers’ legal rights by improperly profiting from the force-placement of hazard insurance through Assurant Inc., American Security Insurance Company and Standard Guaranty Insurance Company (collectively, “Assurant”), which paid allegedly unlawful commissions to Citi.

Both Citi and Assurant deny they acted unlawfully but have agreed to settle the force-placed insurance class action lawsuits to resolve these allegations.

Who’s Eligible

The proposed Citibank force-placed insurance settlement includes two classes: the Flood Settlement Class and the Hazard/Wind Settlement Class.

The Flood Settlement Class includes all persons who were charged by Citi for lender-placed flood insurance (unless such charge was flat cancelled and refunded in full) in connection with a mortgage loan, home equity loan or home equity line of credit secured by property in the United States from May 17, 2006 through April 2, 2014.

The Hazard/Wind Settlement Class includes all persons who were charged by Citi for lender-placed hazard/wind insurance (unless such charge was flat cancelled and refunded in full) in connection with a mortgage loan, home equity loan or home equity line of credit secured by property in the United States from Jan. 1, 2007 through April 2, 2014. Under the terms of the proposed class action settlement, “hazard insurance” refers to insurance against any type of hazards, except floods.

Potential Award

Under the terms of the proposed force-placed insurance settlement, Citi has agreed to pay each Flood Settlement Class Member who submits a timely claim a payment equal to 8 percent of the net amount of premiums that Citi charged for all lender-placed flood insurance placements from May 17, 2006 through April 2, 2014.

Citi has agreed to pay each Hazard Settlement Class Member who submits a timely claim a payment equal to 12.5 percent of the net amount of premiums that Citi charged for all lender-placed hazard insurance placements from Jan. 1, 2007 through April 2, 2014, except that stand-alone windstorm insurance placements shall be reimbursed at a rate of 8 percent.

Proof of Purchase

N/A

Claim Form Deadline

01/21/2015

Case Name

Gordon Casey, et al. v. Citibank NA, et al., Case No. 5:12-cv-00820 and Celeste Coonan v. Citibank NA, et al., Case No. 1:13-cv-00353, both in the U.S. District Court for the Northern District of New York

Final Hearing

8/1/2014

Claims Administrator

CitiMortgage Claims Administrator
P.O. Box 43262
Providence, RI 02940-3262

Phone: 1-877-346-5223
Fax: 1-866-406-0445

admin@CMIMortgageInsuranceSettlement.com

Class Counsel

Shanon J. Carson
BERGER & MONTAGUE PC

Kai Richter
NICHOLS KASTER PLLP

Defense Counsel

Christopher J. Willis
BALLARD SPAHR LLP

Frank Burt
CARLTON FIELDS JORDEN BURT

UPDATE 1: The Citibank force-placed insurance class action settlement was granted final approval on Aug. 21, 2014. Claims will not be paid until all appeals, if any, are resolved. According to the Settlement Administrator:

The date of disbursement to class members who submit approved Claim Forms has not yet been determined. This date will depend on a number of factors, including if any appeals are filed which can take time to resolve. This website will be updated with any new information regarding the disbursement. Please check back at a later date.

If you receive a payment, let us know in the comments section below!

 

UPDATE 2: The Settlement Administrator has posted the following update to the settlement site: 

The date of disbursement to class members who submit approved Claim Forms will be in late March 2015. The date of disbursement to class members who submitted a previously deficient claim that has been cured will be in late April 2015.

UPDATE 3: Payments for the Citibank force-placed insurance class action settlement were mailed March 20, 2015. A second round of payments will go out April 20. Learn more.

 

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84 thoughts onCitibank Force-Placed Insurance Class Action Settlement

  1. Kathy davenport says:

    I received my check earlier in the year but forgot about til I found it recently. Unfortunately it was to late and check was expired . i have tried to get ahold of someone but they aren’t answering my email . i need to talk to a person who can issue me another check.

  2. BRENDA hIGHLNDER says:

    HAD TO REFINANCE MY HOME BECAUSE THEY RAISED MY INSURANCE SO HIGH. i FILED A CLAIM SEVERAL MONTHS AGO AND HAVENT RECEIVED A REPLY AT ALL.

  3. Alexis Sosa says:

    Yo llene hace un año y todavia nada de nada.. I filled a year ago and still nothing at all… Where is my check?…

  4. Alexis Sosa says:

    Donde esta mi Chequeeeeee? Where is my check?

  5. Martha says:

    I filled out a a claim form and mailed it on 12/19/14 in plenty of time before the deadline. I kept a Xerox copy of our claim form and checked the website listed on it periodically for updates. When I saw that settlement was reached and checks were mailed, we awaited for our payment. It never arrived. I emailed the settlement admin and this was their response: According to our records, you did not submit a claim form. In order to dispute this matter, you must provide proof showing that you either mailed or electronically submitted the initial claim on or before the deadline of January 21, 2015. Please let us know if you have any further questions.
    I am responding that I have a Xerox copy of the claim form I sent, with a handwritten notation of the date that I mailed it out- but I did not send it certified return receipt and that I hope that they will honor this valid claim. I hope that they do but lets face it , were talking about lawyers and bankers here, the definition of unscrupulous. I am curious if this was the case for any of you as well. How many other valid claim forms got lost? Please reply to me if this happened to you as I would like to seek recourse and present this info to proper authorities with these facts if it is the case.

  6. Martha says:

    Marianne, the settlement amount to be paid out should be a percentage of what you paid. You can find the details on the settlement website in the settlement agreement that is attached and available for review. In order to be sure of what you are due, you need to calculate that amount by going over your old statements and seeing what you were charged. You can also contact your insurance agent, it was probably Assurant ( as that is who Citi used for forced placement) in order to calculate 8% of your total premiums paid over the 6-7 year span. Dont quote me on the percentage amount – double-check the settlement order from the judge on the website, Im just going from recollection from when I read it. If we dont demand proper payment they are not going to provide it so dont let them get away with it. Send an email as your first recourse to of Admin@CMIMortgageInsuranceSettlement.com. They do actually respond. I am currently disputing the fact that they say that they did not recieve my claim form which I definitely sent in a timely manner. I found this website in order to find others who may be in a similar position because I believe they may have just conveniently (in quotes) lost our claim form in order to avoid payment. Good luck to you. I hope you follow through they BANK on the fact that we wont.

  7. Sandra says:

    My sister recived her check today,she said she would pay half of her cell phone bill with it. Her bill is 92.00 figure it out lol…

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