Big bank in hot water over kickback allegations
Wells Fargo is once again in hot water, this time over force-placed insurance.
The banking giant, along with perennial defendant Assurant, is being sued in federal court over an alleged force-placed insurance kickback scheme, in which plaintiffs claim that Assurant artificially inflated premiums on insurance in order to pay kickbacks to Wells Fargo.
Three plaintiffs, suing Wells Fargo and Assurant individually “and on behalf of all others similarly situated,” claim that when their homeowner policies were not renewed, Wells Fargo force-placed policies which cost significantly more than their previous insurance – in some cases more than twice as much – covered only the structure of the home and protected only Wells Fargo. They further allege that Wells Fargo received a commission for the more expensive policies.
More here…
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Am currently suing Wells Fargo and Assurant. I seem to be unique in that so far I seem to be the only person that had their insurance tied into the escrow account. Wells Fargo failed to make my insurance payment themselves and it was cancelled. I called after which they reinstated it. They again failed to make the payment and it was again cancelled. I again called and they again reinstated it. The very next day they cancelled my insurance for “underwriting reasons” and started forced placed insurance, but did not notify me for 9 months at which time they sent me a large bill for the back time.
I have defeated summary judgement and also motions to dismiss by both parties and motions to sever from Assurant. A tentative settlement offer was made which I refused. If anyone knows of any legal cases in which the mortgage company itself failed to make the required payments which can help, please let me know.
Thank You.