M&T Bank Hit With Force Placed Homeowners Insurance Class Action Lawsuit

A force placed home owners insurance class action lawsuit was recently filed against M&T Bank Corporation and several other defendants on behalf of homeowners who had home hazard insurance imposed on them.

Lead plaintiffs Maria and Joseph Dobish from Pennsylvania filed the M&T force placed homeowners insurance class action lawsuit after they attempted to take out a home equity loan with the bank.

A home equity loan is a type of loan where the homeowner uses their house as collateral. These types of loans are often used to finance home repairs, medical bills, or other major expenses like college education.

Before the couple borrowed the funds, M&T Bank notified them their home was located in a Special Flood Hazard Area according to the National Flood Insurance Program maps. According to the force placed homeowners insurance lawsuit, M&T Bank stated that because of this Maria and Joseph would be required to purchase home hazard insurance.

Home hazard insurance often includes flood insurance, earthquake insurance, and other types of insurance. The couple challenged the bank’s statement that their home was located in the flood zone by providing evidence from the city that their home was clearly located outside of the flood area.

M&T Bank did not accept the city’s evidence and imposed a force placed home hazard insurance policy on the home. The homeowners insurance policy was a back-dated flood insurance policy that was purchased through one of M&T Bank’s subsidiary companies.

As a result, Maria and Joseph decided to cancel their home equity line of credit. The couple was not given a complete refund and instead were given only the unused portion of their flood insurance premium.

Maria and Joseph’s force placed homeowners insurance lawsuit included evidence from FEMA that proved their home was not located in a flood zone. Still, M&T Bank refused to issue a complete refund for the back-dated hazard insurance policy, prompting the couple to pursue legal action on behalf of themselves and other homeowners who had flood insurance placed on their property.

Force Placed Homeowners Insurance Policies

Force placed homeowners insurance polices are often used by lenders to protect their financial interest in a homeowner’s property. While the policies themselves are not illegal, many companies are being investigated for their allegedly improper force placed insurance policy practices.

Banks sometimes create relationships with homeowners insurance companies that charge a premium for their policies. The banks promise not to use other insurance companies and in return the insurance companies provide a kick-back payment to the bank. It is also not uncommon for the policy to be back-dated, similar to the situation Maria and Joseph D. found themselves in.

Some lenders that are being investigated include Fay Servicing, Fifth Third Bank, Flagstar, Loan Care, Dovenmuehle Mortgage, and several others. Homeowners who have experienced similar situations with their lending company may be able to bring a force placed insurance lawsuit.

The M&T Bank Force Placed Insurance Class Action Lawsuit is Dobish v. M&T Bank Corp. et al., Case No. 1:13-cv-01098-RJA, in the U.S. District Court for the Western District of New York.

Join a Free Force-Placed Insurance Class Action Lawsuit Investigation

If you paid for force-placed insurance from a lender, you may be eligible to join a free class action lawsuit investigation into the improper charges you may have paid.

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