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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
Found this:
Arnett v. Bank of America
Case Number: 11-cv-1372
Practice Areas: Consumer Protection, Insurance & Financial Products & Services, Lending Practices & Borrowers’ Rights
Case Status: Settled
Settlement Amount: $31 million
Court: United States District Court for the District of Oregon
Berger & Montague filed a class action complaint in the United States District Court for the District of Oregon alleging that Bank of America requires certain borrowers to purchase flood insurance in excess of what their mortgage contract and federal law requires.
On September 18, 2014, the Court granted final approval of the settlement in this matter. The following documents are available for download:
• Opinion and Order Granting Final Approval of Settlement
• The Court’s Preliminary Approval Order
• Plaintiffs’ Unopposed Motion for Preliminary Approval of the Settlement
• The Settlement Agreement
For more information, please visit http://www.FloodInsuranceSettlementBANA.com.
It doesn’t give when checks are to be dispersed or even if we get anything
Since I could not find any updates online I sent in inquiry to the Claims Administrator. Here is the reply that I received:
Zendesk Administrator (Analytics Consulting, LLC)
Dec 09 12:35 PM
Thank you for your inquiry.
The Judge approved the settlement at the final approval hearing, but there are pending appeals. Payments will not go out until the appeals are resolved. It is unknown how long it may take for this to occur, however it could take a year or more. Please feel free to contact us at 855-294-0133 with any additional questions.
Sincerely,
Office of the Claims Administrator
I have not received any updates on the status of the class action suit against BOA. The final approval hearing was scheduled for Aug. 22, 2014, but I haven’t been able to find any information if that hearing even took place.
I was wondering is anyone getting answers to your questions…is anyone responding?
I was just wondering when I am going to receive the check from BOA. I filled out the paper work in July of 2014 but I have not gotten any additional updates yet. When will the checks be allocated or disburse.
wondering whats going on ?still no checks or any new info
i was also wondering when checks will be sent out i sent my paper july.
i was also wondering when checks will be sent out i sent in my paper work via fax in july.
i also sent in my paper work via fax in july 2014 and was wondering when they will be sending checks out.
i also sent in my paper work via fax in july 2014 and was wondering when they will be sending checks.
I sent in the paperwork when I first received it like in April or May. I too am waiting on the check. Since then my town has made vast improvements in how water is drained from the streets and I am no longer in a flood zone. I was made to purchase up to 250,000 in flood insurance. Not a happy camper.
We too, are victims of BOA for flood insurance, our meadow does flood but our home sits very high on a hill, was built in 1895 (renovated in 2004) and has never been flooded….really come on BOA don’t you think if it was going to flood it would’ve already done so? It would take the flood of Noah to reach our home!!!! our house payment went up over $300 per month due to flood insurance, and they required more than we owe on our house! Its caused us major hardships to get our payment made. Do you know when we will know about the class action? I sent in our paper work for this. thanks