PNC Bank Force-Placed Insurance Class Action Settlement

PNC Bank has agreed to pay $32.3 million in order to settle a class action lawsuit that alleged the mortgage lender charged customers an excessive rate for home force-placed insurance coverage, while the financial institution received “kickbacks.”

Force-placed insurance is generally placed on a property by the mortgage lender when the borrower’s insurance policy lapses or when the homeowner’s insurance policy is not acceptable to the lender.

Lead plaintiff Enrique Montoya filed the PNC Bank force-placed insurance class action lawsuit claiming that PNC Bank N.A., National City Mortgage Company, National City Insurance Group Inc., Allinco Inc. and Alpine Indemnity Limited charged borrowers a higher rate in order to allegedly receive an unauthorized benefit.

The PNC Bank class action lawsuit settlement is open to all Class Members who were charged for hazard, flood, flood gap or wind only force-placed insurance issued by American Security Insurance Company, Voyager Indemnity Insurance Company, or Standard Guaranty Insurance Company or another insurer and paid all or a portion of that policy to PNC.

PNC Bank as well as the other named defendants in the force-placed insurance class action lawsuit expressly deny the allegations and further assert that all of their actions have been fully authorized under the mortgage instruments and by law. However, they have agreed to the terms of the PNC Bank class action lawsuit settlement in order to avoid the cost of further litigation.

UPDATE: The PNC Bank class action settlement was granted final approval on April 13, 2016. 

Who’s Eligible

PNC Bank force-placed insurance class action settlement is open to all Class Members who made at least one full monthly mortgage payment to PNC and were charged for force-placed insurance between Jan. 1, 2008 and Sept. 30, 2015. According to the settlement, this includes more than 130,000 borrowers.

Class Members also include homeowners who during the Class Period were charged for the force-placed insurance but have not paid for it and still owe money. Those Class Members are eligible for a reduction of what they currently owe to PNC in the amount of 12.5 percent.

Potential Award

Varies.

PNC Bank has agreed to provide a cash award or credit to each force-placed class action settlement Class Member in the amount of 12.5 percent of the Net Premium charged to that individual during the Class Period.

Proof of Purchase

N/A

PNC Bank class action settlement Class Members must submit a valid Claim Form and answer the questions truthfully under penalty of perjury. Some Class Members may be asked to verify their identity.

Claim Form

CLICK HERE TO FILE A CLAIM »

Claim Form Deadline

09/08/2016 UPDATED

Case Name

Enrique Montoya, et al. v. PNC Bank N.A., et al., Case No. 1:14-cv-20474-JG, in the U.S. District Court for the Southern District of Florida

Final Hearing

03/09/2016

Settlement Website

www.MontoyaSettlementInfo.com

Claims Administrator

Montoya v. PNC Bank N.A. Settlement Administrator
P.O.Box 1100
Philadelphia, PA 19105-1100

888-665-1127

Class Counsel

Adam M. Moskowitz
KOZYAK, TROPIN & THROCKMORTON, P.A.

Aaron S. Podhurst
PODHURST ORSECK, P.A.

Lance A. Harke
HARKE CLASBY & BUSHMAN LLP

Defense Counsel

Frank G. Burt
CARLTON FIELDS JORDEN BURT, P.A.

Jack B. Cobetto
REED SMITH LLP