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This settlement is closed!
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Shellpoint Mortgage Servicing has agreed to a settlement that will resolve claims that they accepted illegal kickbacks for lender placed insurance policies.
The settlement benefits consumers who were charged for a lender placed insurance policy by Shellpoint on or after March 1, 2014 and who paid all or a portion of the premium for that policy between March 1, 2014 and April 4, 2019.
In July 2018, plaintiff Dorothy Kerr Checa Chong filed a class action lawsuit against Shellpoint Mortgage Servicing claiming that the lender accepted illegal kickbacks from insurance companies.
When Shellpoint secured a lender placed insurance policy for their borrowers, insurance companies such as Overby-Seawell and Proctor Financial allegedly paid Shellpoint if they went through them for insurance.
Lender placed insurance policies are supplementary policies secured by a lender when a homeowner’s insurance lapses or fails to provide sufficient coverage. Many lender placed insurance policies provide hazard, flood, or wind insurance coverage. Lenders pay the premiums on these policies and then charge borrowers for the premium payments along with mortgage payments.
Although it is not illegal for lenders to secure insurance policies on behalf of their borrowers, it is illegal for these lenders to accept kickbacks in return for choosing a certain insurance company. In some cases, this can result in borrowers paying more for a policy than they would have if the lender was not influenced by a kickback.
Shellpoint has not admitted any wrongdoing by settling the insurance kickback class action lawsuit against them. Instead, the company will settle the claims to avoid the costs and risks of continuing litigation through a trial.
The settlement will provide 8.875 percent of the premium charged to consumers. This amount will be paid in a cash award or credit to a consumer’s account, depending on whether or not the Class Member still owes premiums to Shellpoint.
In order to receive compensation from the settlement, Class Members are required to submit a valid claim form by Nov. 12, 2019. Claim Forms can be submitted online or through the mail.
The deadline for exclusion and objection is Aug. 14, 2019. The final approval hearing for the settlement is scheduled for Sept. 13, 2019.
Who’s Eligible
Consumers who were charged for a lender placed insurance policy by Shellpoint on or after March 1, 2014 and who paid all or a portion of the premium for that policy between March 1, 2014 and April 4, 2019.
Potential Award
8.875 percent refund of premiums charged by Shellpoint under a lender placed insurance policy.
Proof of Purchase
N/A
Claim Form
NOTE:Â If you do not qualify for this settlement do NOT file a claim.
Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.
Claim Form Deadline
11/12/2019
Case Name
Chong v. New Penn Financial LLC d/b/a Shellpoint Mortgage Servicing, Case No. 9:18-cv-80948-RLR, in the U.S. District Court for the Southern District of Florida
Final Hearing
9/13/2019
Settlement Website
Claims Administrator
Chong v. Shellpoint Settlement Administrator
c/o KCC Class Action Services LLC
P.O. Box 404041
Louisville, KY 40233-4041
866-579-5212
Class Counsel
Adam Moskowitz
THE MOSKOWITZ LAW FIRM PLLC
Defense Counsel
Marc J. Gottlieb
AKERMAN LLP
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6 thoughts onShellpoint Mortgage Lender Placed Insurance Class Action Settlement
Check coming from usps
Was it a check?
I don’t think it’s a check!
How do I know if I qualify. My loan was bought from nationstar by Shellpoint. I’ve no had insurance except that of nstionstar . They pay it as part of my mortgage. Can’t get insured doctors recent fire in my area . So only have lender place insurance to cover their investment and it’s below the value of my home.
Add me please
add me please they did the same with the 2 dollar nuggets on the value menu..up charge of 50 cent if you don’t notice.. done at the Springfield Massachutes McDonalds liberty st McDonalds and the state st McDonald’s.