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A class action settlement in the Wells Fargo force-placed insurance class action lawsuit has been reached and Class Members may be eligible for benefits.
The practice of force-placed insurance allows lenders like Wells Fargo to issue an additional insurance policy on a homeowners property to protect the property still under a mortgage contract. When a lender determines that a homeowner’s current insurance policy has lapsed or does not adequately protect the home from natural disasters— hurricanes, floods, winds, etc.—and other hazards and liabilities, the mortgage lender can legally issue an insurance policy on behalf of the homeowner, who is then responsible for paying the policy’s premium. While force-placed insurance practices are not illegal, to charge a homeowner more than what it should cost to insure a property for personal gain is strictly prohibited.
Many homeowners participating in the Wells Fargo force-placed insurance class action lawsuit with mortgages provided by Wells Fargo alleged that the bank “artificially inflate borrowers’ premiums with costs well beyond the cost of coverage.” There are additional allegations that Wells Fargo worked in conjunction with insurance companies like Assurant Inc. to increase the cost of the policies paid by homeowners, which then provided kickbacks for Wells Fargo and its affiliates.
In June 2012, lead plaintiff Ira Marc Fladell and participating co-plaintiffs filed a nationwide Wells Fargo force-placed insurance class action lawsuit and brought forth allegations of breach of contract, breach of implied covenant of good faith and fair dealing, unjust enrichment, breach of fiduciary duty, and a number of other violations against lending and mortgage practices. A preliminary settlement was reached by both parties on Feb. 3, 2014.
Wells Fargo denies liability in the force-placed insurance allegations, but settled the class action lawsuit to avoid the uncertainties of continued court proceeds and legal expenses.
Who’s Eligible
You are a Class Member of the Wells Fargo class action settlement if you are a borrower in the United States and were overcharged by Wells Fargo for a hazard, flood, flood-gap or wind LPI Policy during the Class Period. This applies to Class Members who did and did not pay the LPI Policy net premium.
The Class Period varies based on the state in which your property is located.
The commencement date for the Class Period for each participating state is as follows:
(i) California: Oct. 7, 2007.
(ii) Florida: Sept. 2, 2006.
(iii) Illinois: July 5, 2002.
(iv) Indiana: June 15, 2002.
(v) Louisiana: Feb. 19, 2003.
(vi) New Jersey: April 2, 2007.
(vii) New York: July 5, 2006.
(viii) Ohio: Aug. 8, 1998.
(ix) Pennsylvania: April 7, 2005.
(x) Texas: Oct, 7, 2007.
(xi) All other states: Jan. 1, 2008.
The end for all states Class Periods is March 17, 2014.
Potential Award
Varies.
- Class Members who had a LIP Policy charge occur on or before March 24, 2012, will receive a cash or credit award of 11% of the net premium of the policy.
- Class Members who had a LIP Policy charge occur after March 24, 2012, will receive 7% of the Net premium.
Proof of Purchase
To receive compensation from the Wells Fargo force-placed insurance class action settlement, Class Members must submit a completed Claim Form by mail postmarked no later than 60 days after the Final Settlement Hearing, and include all the necessary verification information. Class Members may alternatively upload a complete Claim Form to the settlement website with all the necessary verification no later than 60 days after the Final Settlement Hearing on Dec. 17, 2014.
Claim Form Deadline
12/14/14 (ESTIMATED). Claims must be submitted no later than 60 days after the Final Settlement Date. This will occur only after the class action settlement is approved and all appeals, if any, are resolved.
Case Name
Fladell, et al. v. Wells Fargo Bank NA, et al., Case No. 0:13-cv-60721, in the U.S. District Court for the Southern District of Florida.
Final Hearing
09/18/2014
Settlement Website
www.WellsFargoForcePlacedInsuranceSettlement.com
Claims Administrator
Fladell Settlement
c/o GCG
PO Box 10062
Dublin, Ohio 43017-6662
1-866-847-5874
Class Counsel
Adam M. Moskowitz
Harley S. Tropin
KOZYAK, TROPIN, & THROCKMORTON, P.A.
Aaron S. Podhurst
Peter Prieto
PODHURST ORSECK, P.A.
Lance A. Harke
Howard M. Bushman, Esq.
HARKE CLASBY & BUSHMAN LLP
Defense Counsel
Michael J. Steiner
SEVERSON & WERSON
UPDATE: The Wells Fargo force-placed insurance class action settlement received final approval on Oct. 29, 2014.
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70 thoughts onWells Fargo Force-Placed Insurance Class Action Settlement
I filled out five packages, they mailed them back to me towards the end of 2015. I filled them out again and mailed it back before the deadline and I still haven’t received any checks. I left a message no one has called me back yet…Anybody else still haven’t received their checks???
I completed 5 of the forms but only received 4 checks. Did this happen to anyone else?
Yes the same thing happened to me, they sent me one form again and I sent it back within the deadline but I also only received four checks. I will be contacting them by mail to find out what happened.
I received four checks 91.00 94.00. 92.00 and 29.00 here in Oklahoma City my last name starts with a T.
I had only one property but used their insurance for four years. I live in Oklahoma City
I see people are receiving more then one checks, is that for multiple properties?
Congrats, to those who finally received their checks:)) So what states are you guys in? just checking to see if anyone is close to Tennessee so I will know if mines coming soon.
I’m in Missouri and I haven’t received mine yet. They may be sending them out by last name
I received four checks from the settlement.
Did you receive them today???
I still have not received my check
I received three checks the highest one $264.00, $243.21 and $5.28 all dated 1/29/16 from JP Morgan Chase.
Received a check for $101.64 in AZ. Class action only benefits the lawyers. My house is gone and they reap the benefits. I fill out a booklet of forms for $100. Wow. What happened to the $$$. I was expecting $750 to $1000.