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A federal judge on Friday granted final approval to a $300 million class action settlement with JPMorgan Chase NA and Assurant Inc. over claims that the lender and insurance company overcharged customers for force-placed hazard insurance, which they used to fund kickbacks.
U.S. District Judge Federico Moreno said that the class action settlement agreement is a good deal for the plaintiffs because it is likely that they would not have prevailed had they pursued a trial, according to how other similar class action lawsuits over force-placed insurance have turned out.
“Many of the claims presented by plaintiff were highly complex, and there is strong authority to suggest that plaintiff may not have prevailed,” Moreno said in his Feb. 28 decision. “There exists a potential that the class could endure a long and expensive trial only to come away with nothing that is impossible to ignore.”
“In the face of these headwinds then, the settlement is favorable one,” Moreno added.
The JPMorgan Chase force-placed insurance settlement is for all nationwide borrowers who had an insurance policy force-placed on their residential property from Jan. 1, 2008 and Oct. 4, 2013, and were charged a premium for the insurance costs by Chase.
Moreno says that the estimated Class is comprised of 762,390 individuals. Class Members will have to submit a valid Claim Form and will receive 12.5 percent of the net premium charged to them, less any refund they have already received.
The Settlement Administrator for the JPMorgan Chase class action settlement is Garden City Group, which has set up both a website and a 24/7 toll-free phone number that Class Members can use for submitting a claim. [See detailed claim filing instructions here.] Class Members were also sent notification about the class action settlement in the mail, and a notice was published in the print edition of the USA Today on Nov. 14, 2013.
The class action lawsuit settlement also provides for $650 million in injunctive relief. Both Chase and Assurant will not be allowed to inflate premiums imposed on borrowers for six years. During that period, Chase will not accept financial interest in the placement of force-placed hazard insurance policies “outside of the premium itself and the protection of the policy.”
Chase is also prohibited from taking commissions on force-placed hazard insurance. And Assurant is prohibited from paying commissions to Chase for force-placed hazard insurance.
The defendants will also have to pay $20 million in attorneys’ fees as part of the settlement, which is seven percent of the total settlement amount, which is low compared to the 20 to 30 percent that attorneys typically claim.
Moreno gave the Chase force-placed insurance class action settlement preliminary approval in October 2013. A Final Fairness hearing took place on Feb. 14.
The class action lawsuit was brought because Chase required, as part of their mortgage loans, that their customers purchase hazard and wind insurance on their property, and if there was a lapse in coverage, the agreement said that Chase could “force insurance coverage on the property at the homeowner’s expense.”
The plaintiffs do not take issue with Chase asking customers to cover forced placed insurance, but claim that Chase and Assurant colluded together to charge inflated premiums and paying themselves kickbacks through commissions, inexpensive administrative services and questionable reinsurance agreements with bank affiliates.
A group of Class Members objected to the JPMorgan Chase force-placed insurance class action settlement in January 2014, saying it unfairly requires Class Members to submit Claim Forms in order to get relief, a requirement that is an “unnecessary impediment to recovery.”
Class Members will have until 60 days after the Final Settlement Date to submit their claims in order to seek money from the class action settlement. Since the settlement was approved on Feb. 28, the estimated Claim Form deadline is April 29, 2014. The exact deadline will be posted at www.SaccoccioSettlementInfo.com when the Settlement Administrator updates the website.
The objecting plaintiffs are represented by Edward W. Ciolko, Peter A. Muhic, Donna Siegel Moffa and Amanda R. Trask of Kessler Topaz Meltzer & Check LLP, by Brad Seidel and Christopher Johnson of Nix Patterson & Roach LLP, by Tod Aronovitz of Aronovitz Law, by John A. Yanchunis of Morgan & Morgan Complex Litigation Group, and by Brian D. Penny of Goldman Scarlato Karon & Penny PC.
The Florida plaintiffs are represented by Adam M. Moskowitz, Harley S. Tropin, Tucker Ronzetti, Rachel Sullivan and Robert J. Neary of Kozyak Tropin & Throckmorton PA; Aaron S. Podhurst and Peter Prieto of Pdhurst Orseck PA and by Lance A. Harke, Sarah Clasby Engel and Howard M. Bushman of Harke Clasby & Bushman LLP.
The JPMorgan Chase Force-Placed Insurance Class Action Lawsuit is Salvatore Saccoccio, et al. v. JPMorgan Chase Bank NA, et al., Case No. 1:13-cv-21107, in the U.S. District Court for the Southern District of Florida.
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14 thoughts on$300M Chase Force-Placed Insurance Class Action Settlement Gets Final OK
Yes we have Field out from nail it critfier have haesd from no one the number you call doese exit anymore
I, like others, sent in my forms – then never heard from the firms representing us again.
I paid 5 years of the forced-placed insurance.
That is much money.
I suspect that the attorneys are keeping our money.
Perhaps, another class-action suit needs to be established against these attorneys…?
Did ANYONE receive a settlement check? I filled out the paperwork but never heard anything one way or another. Someone has dropped the ball I think.
I received my first and only claim packet in November of 2013.. I filled out 5 forms (each has a claim #) and mailed them 11/26/13. I was on the website today reviewing information and see there is a claim form that must be submitted by deadline of February 2015… If I already filed and mailed my forms November of 2013, do I need to file again? … Couldn’t find any information on the website for those claimants who have already filed their claim forms…. Anyone wonder same thing?
Did you receive any money from Chase? It’s Aug 2016 and I have not seen anything. They left a voice message months ago saying I would receive a check….but nothing has been received by me yet?
I received a phone call around September or October and the woman said that they were mailing out the claim settlement checks in December. I still haven’t received anything from this. Has anyone else?
Nope…nothing. I called them last month and was told the check will be mailed by June 2015 & Chase was the only people who can tell me how much the check will be. I’m patiently waiting.
Its 10-20-14 and i havent heard anything either. How will they deliver the checks?
Where is the checks? It is 10/20/2014 and I have not received anything. I file my claim.
We have not heard enything are reserved eny money form Bank of America settlement on the floodinsurancsettlement I am a bout to get for closed on and I need the money the stole from me nationstar mortgage bought from Bank of America I know I sent in the claim form In a fax. Four mouths a go I was in the hospital and could not pay my house payment for that mouth pleases let me know something this is my claim number 1378602
When will the checks be mailed?
I am so glad that we are getting some money back from our home-hazard insurance that cost so much I paid for a lot for years.my I was paying 11% on my Home they gave me a dirty deal for years.so glad I don’t owe them one red penny Dorothy Redmond Holmes co Ms.
when is this coming I have filed a claim?