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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 have not received a check as of yet!! I called the 1-866 phone number and it is ringing busy. Could someone please advise on what I should do. Thanks
I received a postcard in the mail about the class action suit against Wells Fargo for the forced hazard insurancs. The p I st card said that if I received this card I didn’t need to do anything that I was already reconized in the suit. Ok, now that was quite a while ago and I haven’t heard a word since.I know they settled the case but I haven’t received a letter, postcard or payment? How long does it take? Did I miss out because I didn’t fill out a claim online? Does anyone know what is going on?
Not long after I posted the above comment, I get a call that my check has been returned to Fladell et al. The check was sent to my physical address. Our glorious post office had returned the check because it didn’t have my p.o. address on it. I live in the boonies and we have no home delivery for mail. So, the person who called got my mailing address and I still haven’t seen the check yet….that was 2 weeks ago. Where the hell is my money?
Whoa! People receiving checks already? It is June and I haven’t heard anything yet. Got the registered mail receipts for my filing in Dec of 2014. What in hell is going on? GCG closed their web site so cant get phone number to call. Wells Fargo bastards charged me 5K per month for hurricane insurance even tho I had insurance on the property. Anybody have a phone number for the lawyers? Thanks.
I have a loan with HSBC I sent the forms back in Decn of 2015 it stated to sent the forms back in 15 days. Firsts I got the forms late then I have a death in My family. My deceased father also have a loan with Wells Fargo I sent back 7 forms and only got 3 checks. It would really help to receive this checksite with the the recent death in my family.
I haven’t this day seen a dime…. Guess I wasn’t eligible…. Sigh
I finally received a 132.00 check I was like this is all…. Hummmm
I received a measly $15 check and it was in my ex name too after I submitted the paperwork from divorce showing he released all rights as part of divorce over 18yrs ago why does his name appear this was a hoax to get ur info for lawyers to get paid and no one responds to my questions
How much money do you receive? I had 10 forms to fill out and they returned them for revision. I have not received anny thing at this time? Can someone give me an estimate on how much they received ?
Yes, I believe so, I got a call from someone by the name of Barbara on January 5, 2016 she was with the Fladell settlement, and she was making sure i mailed in my forms before the deadline. I just called her back two weeks ago and she said i have to wait 180 days from 12/29/15.
I only had one form and that was sent back with a date to return by 12/29/2015. I did that and have not heard back. Funny is they charged me 2950 for my forced placed insurance. My calculations mean they owe me around $295. Are they still mailing checks?
Checks haven’t been mailed out yet to homeowners who had to make corrections.