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An Oregon federal judge has preliminarily approved a class action settlement worth $31 million that will resolve allegations that Bank of America NA illegally forced homeowners to purchase overpriced and excessive flood insurance policies.
The plaintiffs filed the class action lawsuit, which alleged that Bank of America sent letters to homeowners that claimed they did not have sufficient flood insurance coverage because they lived in flood-prone areas. The plaintiffs argued that there was no federal requirement for the homeowners in those areas to carry extra flood insurance. However, they claim that the bank forced them to purchase expensive flood insurance policies and received kickbacks from the insurers.
Bank of America denies any wrongdoing, but agreed to settle the class action lawsuit to avoid the expense and uncertainty of ongoing litigation.
U.S. District Judge Michael Simon certified the class and preliminarily approved the Bank of America force-placed insurance settlement, finding that the settlement terms were fair, reasonable and adequate.
Class Members of the force-placed insurance class action settlement include all persons who were sent a flood insurance cycle letter or were charged for lender-placed flood insurance by Bank of America, Countrywide Home Loans Inc. or Countrywide Home Loans Servicing LP between Jan. 1, 2007 and April 4, 2014 in connection with a residential mortgage loan, home equity line of credit, reverse mortgage loan, or loan secured by shares in a cooperative housing association.
In addition to providing compensation to Class Members in connection with their claims regarding excessive flood insurance requirements, the class action settlement also requires Bank of America to make significant changes to their force-placed insurance policies. Bank of America agrees not to take any commissions from force-placed insurance for three years.
A hearing for the final approval of the Bank of America flood insurance class action settlement has been scheduled for Aug. 22, 2014.
Earlier this month, Bank of America agreed to settle a similar force-placed insurance class action lawsuit in Florida for $228 million.
The Oregon Bank of America force-placed insurance settlement is the latest in a string of similar settlements by other major banks. Last month, a federal judge gave final approval to a $300 million class action settlement over JPMorgan Chase’s force-placed insurance practices. Wells Fargo and Citibank have also reached similar force-placed insurance settlements.
Additional information on the Bank of America class action settlement can be found at www.FloodInsuranceSettlementBANA.com. The deadline to file a claim was Aug. 11, 2014.
The plaintiffs are represented by Nichols Kaster PLLP, Stoll Berne Lokting & Shlachter PC, Berger & Montague PC, Taus Cebulash & Landau LLP, and Shapiro Haber & Urmy LLP.
The Bank of America Force-Placed Insurance Class Action Lawsuit is Larry Arnett, et al. v. Bank of America NA, et al., Case No. 3:11-cv-01372, in the U.S. District Court for the District of Oregon.
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37 thoughts onBank of America Reaches $31M Flood Insurance Class Action Settlement
Bank of America is now starting their crusade for force-feeding exorbitant flood insurance premiums in the counties of South Florida.
I have been in zone X for many years in Broward county. As a senior citizen, I only have BofA as an “equity line of credit” lender. I received the first (of many) letters starting on September 5th, 2014 telling me they will impose a $2,371.95 1 year flood ins. policy on my property. The next night (SATURDAY! at 7:15 pm) I received a phone call from a female at BofA asking me to send the money for the flood insurance policy! Then, the following Monday 9/08/14 I purchased a flood ins. policy to cover my home. After speaking with the insurance rep. from BofA, he requested I fax BofA ins. dept. my 4 page policy that very day, Monday Sept. 8, 2014. I did so within 20 minutes from speaking to him.
However, this past Friday, 9/12/14, I received ANOTHER letter stating the bank will now impose a $4,413.15 1 year flood insurance policy on my home!! I had to wait until today, Monday 9/15/14, to call the bank as they do not have customer service available on the week ends. I spoke with “Gary” who told me my flood policy WAS NOT ENOUGH…that I had to cover the ENTIRE BUILDING: ie: roof, walls, ceilings, etc etc.so he said there will be ANOTHER letter forthcoming!.
This needs to be stopped! I am on limited budget from social security and will lose my home after 38 years if I don’t give in to their demands.
Any updates on this? I assumed we would all be getting ‘refund’ checks for the OVER PAYMENTS we dished out for years. Where’s our justice? Where’s our checks?!
I’d like to thank the lawyers and people involved in this suit. For the first time since purchasing this loan, I was not harassed by BAC. I did not receive the threatening letters about flood insurance. Every year (July) my condo flood insurance ( which is purchased by the condo association) is renewed. Normal business. Trying to fax, email, and mail my insurance docs to BAC was torture. They insisted they never received the info. I would resort to screaming cursing and threatening a lawyer every year. They wanted me to take on the burden of cost for the entire condo association. Really? I think I purchased $75 of flood insurance just to fix their mistake. To add insult to injury, I refi’d under harp. Because of flood insurance, it took them 7 months to establish flood insurance. What a painful company. I swore they did this deliberately to avoid the refi. They had 0 reason for denying me. Again, I threatened a lawyer. Fortunately, I won and refinanced. Had no choice but to refi with them. I am a pretty calm person, but this was insane. Hope everyone is compensated.
I’m also a Bank of America victims, I was forced to get flood insurance, I was not in a flood zone, both my next door neighbors weren’t, everyone across the street, my mortgage went 250.00 per month, forced us into chapter 13, I went into the hospital 2 times for depression because of the fear and struggle of loosing our home, never been hospitalized for depression, I went to jail for the first time in my life due to domestic with my husband due to all the stress, then to get a letter after charging us for almost 2 years and thousands of dollars and now we’re not in a flood zone, never gave us a penny back, I’m not able to discuss it with them due to being in a bankruptcy due to them, any info would be appreciated
I was one of the family that was put in a hard ship of having to bay more than my home vaule ins. and after two years later by having my land reseavedad I was not in a flood jipoin all that time , which was more than 200;00 mouth I payed from 2011- 2013. I was and still very mad , and have not heard anything from them. I would love to know something on this please . your truly; Jeff rains, and Donna rains
What is the status of our lawsuit againt Bank of America? I sent my paperwork in the beginning of 2014. I’m from Michigan and my house was not in a flood plain when I bought it and then FEMA came through and changed the map. Bank of America then sent me papers with “lender imposed flood insurance”. I want justice!
Estoy haciendo un refinanciamiento con Bank of America y me han exigido comprar seguro de inundacion, segun documentos de FEMA mi propiedad esta en zona X antiguamente estaba segun documentos en zona AH,ahora bank of America quiere qye yo le diga ala compania de seguros que ponga me casa en zona AH para poder ellos continuar con el proceso de hipoteca,yo les he peleado que yo no estoy en esa zona AH,pero por la necesidad de la hipoteca renove otra vez la Antigua bcobertura ya que no quieren reconocer la zona donde estoy.
creo que en California hay un demanda colectiva contra bank of America por ete motive..
As soon as BofA bought our loan from Country Wide they said I had to double the Flood ins. We owed 125K and they said I had to have 250K ins. Over the years I tried to contact any agency that would help. They are protected by the Gov. Now finally the class action. I am trying to get back the overcharges from 6 years of gouging by them. Contact Berger & Montague,P.C. 1622 Locust street, Philadelphia, PA 19103.
They sent me the class action paperwork. Luck to all.
Bank of America is horrible. DO NOT DO BUSINESS WIYH BANK OF AMERICA…BASTARDS!!!!I am a long time customer and at one time had three mortgages, checking and savings. I banked with them exclusively. NO MORE, thank god I am down to one loan. This past dec 2013. BOA added a flood insurance policey to my mortgage. I already had one and had sent it to them. They went ahead and added $250 to my loan and will not take it off. They are running a scam because they are charging me interest on the added dollars. I have called them 32 times, faxed the three letters, and spoken with reps from in the mortgage dept and the flood insurance to the tune of over 35 people with each call lasting 45 to 90 minutes. these calls included supervisors. It is now march 2014 and still not resolved. I am at my wits end. DO NOT DO BUSINESS with BANK OF AMERICA. Unless you are into torture.
I was one of the victims that Countrywide Home Loans and Bank America did this to, I wanted to be included with this class action suit since I was getting charged a high rate of insurance please let me know what I should do.
a las personas que tienen en sus registros con countrywide les estan llegando cartas a sus domicilios para saber si quieres ser parte de la demanda o no quieres participar y excluirte,a nosotros nos llego hoy y tienes q que regresar el formulario para hacerles saber que quieres participar en la demanda colectiva. y hai viene la informacion del caso cuando es la audiencia el por que todo explicado espero y pronto te llegue a tu domicilio.Tmb viene una pagina de internet donde puedes llenar tu formulario en internet.
Frist Bank of America stated I had no insurance for flood protection, then when I provided proof that I had they left me alone for about a year now they are saying I don’t have enough flood insurance and I owe $4400.00. My house is in a flood zone but is elevated. What can I do?????
I have an existing home equity loan with BOA, and was required to add flood insurance as well. I am not in a flood area, but agreed to it because I needed the loan. I am planning to use it again for remodeling on my home, am considering joining the class action suit, but am worried that BOA might call my loan because of the suit. Can they do that, is my question?
i am also paying a very high flood insurance and i would like to know how i can get it lowered.