Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
An insurance kickback class action settlement has been reached and the defendants—HSBC PLC and Assurant Inc.—have agreed to pay $1.8 million to settle allegations that the bank received kickbacks for locking consumers into inflated flood insurance contracts. The parties submitted this HSBC insurance kickback class action settlement for preliminary approval by the Colorado federal court on April 10.
The original HSBC insurance kickback class action lawsuit claimed HSBC bank knowingly and purposefully chooses excessive coverage levels when the bank needs to force-place a flood insurance policy on homeowners whose home insurance coverage has lapsed. HSBC would then allegedly take a bonus or “kickback” from Assurant’s American Security Insurance Co. for the high insurance coverage policy choice.
The proposed HSBC insurance kickback class action settlement will provide about 11,000 HSBC Class Members with monetary compensation to settle the allegations. Additionally, if this HSBC class action settlement is approved, the agreement would bar the bank from choosing insurance for homeowners at a higher level than what the consumers originally had when the policy lapsed.
According to the insurance kickback class action settlement, “The proposed settlement returns approximately 90 percent of the commissions that were paid to the HSBC defendants in connection with [lender-placed flood insurance] placed during the class period, provides an excellent recovery for settlement class members, and is plainly adequate under the governing standards for evaluating class action settlements in this circuit.”
Both parties submitted a joint status report on the HSBC insurance kickback class action lawsuit and possible settlement back in January, at which time they informed the court that they were close to reaching a deal that would settle this Colorado-based suit and a similar insurance kickback class action lawsuit in New York federal court. Earlier this month, the parties involved in the New York HSBC class action lawsuit informed also filed a status report stating they were close to agreeing on a deal.
In March 2014, HSBC attempted to dismiss the New York-based insurance kickback class action lawsuit filed against them. However, U.S. District Judge Mae A. D’Agostino denied the defendant’s motion and also allowed the plaintiffs’ claims for unjust enrichment, breach of contract, and violation of New York consumer protection law to stand in this case against HSBC and Assurant. Like the Colorado HSBC class action lawsuit, the New York case alleges HSBC and Assurant made an anti-competitive force-placed insurance arrangement that allowed both companies to profit at the expense of the homeowners.
The plaintiffs are represented by Peter A. Muhic, Tyler S. Graden and Samantha Jones of Kessler Topaz Meltzer & Check LLP.
The HSBC Insurance Kickback Class Action Settlement is Weller, et al v. HSBC Mortgage Services Inc., et al., Case No. 1:13-cv-00185, in the U.S. District Court for the District of Colorado.
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.