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A federal class action lawsuit claims Wells Fargo Bank (WFC) forces borrowers to take out too much flood insurance on their homes in order to pocket commissions and kickbacks.
According to the Wells Fargo class action lawsuit:
“[Wells Fargo] unfairly, unjustly, and unlawfully forced Plaintiff and other borrowers to purchase and maintain flood insurance for their property in amounts greater than required by law, greater than required by their mortgage agreements, and greater than Defendants’ financial interest in their property, without any reasonable basis or justification.”
Furthermore, the class action continues, “[Wells Fargo] unfairly, unjustly, and unlawfully profited from force-placing flood insurance on Plaintiff’s property and the property of other borrowers, by charging Plaintiff and other borrowers amounts in excess of the net costs incurred by Defendants for such flood insurance and by accepting kickbacks, commissions, or other compensation for themselves and their affiliates in connection with force-placed (also known as lender-placed) flood insurance.”
The Wells Fargo flood insurance class action lawsuit is brought on behalf of the following classes:
Nationwide Flood Insurance Class. All persons nationwide who have or had a home loan or line of credit with Wells Fargo and were required by Wells Fargo or its agents or affiliates to purchase or maintain flood insurance on their property in the United States.
Nationwide Lender-Placed Insurance Class. All persons who were charged for lender-placed flood insurance by Defendants and/or paid such charges to Defendants, in whole or in part, within the applicable limitations period.
Pennsylvania Putative Class. All persons who have or had a loan or line of credit with Defendants secured by their residential property and were required by Defendants to purchase or maintain flood insurance on their property in the State of Pennsylvania within the past six years.
A copy of the Wells Fargo Flood Insurance Class Action Lawsuit can be read here.
Updated April 12th, 2011
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Top Class Actions Legal Statement
14 thoughts onWells Fargo Flood Insurance Class Action Lawsuit
Please add me to this lawsuit. I am forced to have more flood insurance on my home than the value of my house.
I am forced to carry flood insurance $100,000 more than the loan on my house
I have been forced by Wells Fargo to purchase Flood insurance above the amounted that is owned on the loan since 2008. Wells Fargo was not the loan originator, they purchased my loan and since have forced me to have more then double the amount of flood insurance compared to what I owe on my note.
Do I have recourse?
Regards,
Herb Rosene
what is the law firm handling these cases against Wells Fargo and FEMA they’re forcing me to put flood insurance on my house and I’m four foot off the ground on a hill in the middle of the country its not fair I need help. and yes there is a ditch nearby my house a (ditch).
I’ve been fighting with Wells Fargo Home Mortgage now for 8 years over flood insurance. Cost me $1,000 in attorney fese but the flood insurance was removed as I am not in a flood zone. WFHM bought my loan back in 2003 and then pulled the forced placement flood insurance BS back in 2004. The past 2 years I’ve received a bill for flood insurance in the amount of $250,000 coverage. I don’t have any policy and I am sure this is WFHM back at it again. Last year I didn’t pay squat and this year they are going to get sued. They not only put flood insurance on my mortgage, they added mortgage insurance, and an escrow account for homeowners and property taxes which I pay myself. I found out my house was being foreclosed on for those fees which I already paid myself in 2006. My a-hole husband would not let me pursue a class action lawsuit back in 2006. Maybe it would have saved some of you this pain now. They best line from one of their arrogant CS agents was “we are Wells Fargo and we can do what we want”. That about sums it up for this bunch of dirt bags masquerading as a bank..
im battling wells fargo now over this… i have 30k remaining and they are saying that 60k is not enough!! they have raised my mortgaged over 35% in 5 years!! i Hate wells fargo!!!
if anyone has info on how to handle please email me cwsth29@hotmail
I HAVE BEEN RIPPED OFF FOR THOUSANDS OF DOLLARS OVER THE LAST SIX YEARS AFTER MY MORGAGE GOT BOUGHT-OUT BUY WELLS FARGO.THEY HAVE CONTINUED TO LOOSE MY POLICY OR STATE THAT I DID NOT HAVE ENOUGH COVERAGE WHEN MY COVERAGE WAS THREE TIMES THE LOAN AMOUT. THEIR FORCED COVERAGE CONTINUED TOO WIN AND THREATEN MY GOOD CREDIT.THEY HAVE FORCED ME TO HAVE CONTINUED PAYING TWO COMPANIES THOUSANDS OF DOLLARS. I HAVE STRESSED OUT TO A NEAR HEART ATTACK TWICE OVER MANY PHONE CONVERSATIONS OF THEM DEMANDING FAR MORE THAN MY MORTGAGE PAYMENT.THIS IS A SIN OF THE WORST KIND AND NO ONE IS ACCOUNTABLE
My flood insurance coverage limits exceeds the value of the asset by more than 57k, the loan by more than $100k.. Where the hell is the banking regulators on this BS? Write your congressmen, call the regulators for Wells Fargo, and write FEMA. Make some noise people. They found a loophole and must be getting some kickback.
Why do i have to maintain 100% rebuild on my house? Please. Property has never had a claim for flood damage. I pay $1600 a year for flood insurance. Its ridiculous..
Please help!! Wells Fargo & there staffing & education & knowledge of forcing placing flood insurance plans are causing mayham to there borrowers! I’ve been maped in a flood zone that’s less than 6 months old. I got letter of 45 day notice & let my insurance agent know, & it wasn’t even available. To whom ever this is going to, I have all my ducks in a role & I know they are guilty & not even following rules of FEMA & also will not communicate with me are accept my insurance agent plan. The firm panel is undetermined & unknown. 4 months of fighting I want to sue and get compensation for this nightmare they have now put me through!