Class Action Lawsuit: Seterus Reaped Kickbacks from QBE First Force-Placed Home Insurance Policies

Class Action

Class Action Lawsuit: Seterus Reaped Kickbacks from QBE First Force-Placed Home Insurance Policies

Seterus, one of the country’s largest servicers of home mortgages, has been hit with a class action lawsuit alleging the company has overcharged its customers for mandatory insurance coverage by partnering with one insurance provider, who then kicks back a portion of the purportedly overpriced insurance policies to Seterus.

On May 24, plaintiff Jolanta Rozwadowska filed the putative class action in Cook County Circuit Court against Seterus Inc. and QBE First Insurance Agency over the alleged kickback scheme.

According to public records, the mortgage on the property was modified in 2014, and assigned to Fannie Mae. Seterus serviced the mortgage on behalf of Fannie Mae. In 2015, Fannie Mae filed a foreclosure lis pendens notice with Cook County against the property, public records said.

While Seterus was servicing Rozwadowska’s mortgage, the lawsuit said she allowed her home insurance coverage to lapse. Under the terms of her mortgage contract, this allowed Seterus to then select a new insurer to cover the property, and force her to pay for the coverage.

This so-called “force-placed” insurance coverage is standard practice for Seterus and other home mortgage loan servicers, who require the insurance to cover their investment against hazards, the complaint said.

However, while the language of the contract authorizes loan servicers, like Seterus, in the event of a lapse of coverage, to purchase “reasonable and appropriate” insurance policies to cover the home, the lawsuit said Seterus and QBE “have an exclusive arrangement,” under which “QBE First monitors Seterus’ mortgage loan portfolio to identify lapses in coverage or inadequacy of insurance.”

When such lapses are found, the lawsuit said, Seterus allows QBE to buy the insurance, and Seterus includes the premium in its borrowers’ mortgages.

However, the complaint said in Rozwadowska’s case, and in the case of potentially thousands of others homeowners in Illinois and elsewhere, Seterus “abused the discretion” granted it under the mortgage loan agreement, force-placing insurance policies that are overpriced because, according to the complaint, “a considerable portion” of the premium charged to borrowers is “kicked back to Seterus and/or QBE First.”

Find out more here…



7 Responses to “Class Action Lawsuit: Seterus Reaped Kickbacks from QBE First Force-Placed Home Insurance Policies”
  1. I was ripped off by Seterus. for a QBE lawsuit. They kept adking me for more records and numbers and I sent them the QBE HO policy back in June.
    When disbursements were “supposed” to be released they told me I didnt provide them with correct info.
    I have all the emails.
    Seterus Kept My Award and put it in his own pocket

  2. Vanessa H says:

    Wow, this is truly a shame for people to be treated this way. We too are having a very untasteful experience with QBE insurance right now. Our home has suffered storm damages just this year March 2017. They said damages were over 7,799.94 They said we get a check for 1,590.61 This is unacceptable, and crazy. We as homeowners pay to have insurance to protect ourselves against situations that occur to our homes and property. Then once we file a claim, it’s just like having no insurance at all. Because you have to cover the cost of getting the repairs done yourself, of what they refuse to cover. What’s the use of having insurance, if we end up paying for it ourselves? Thank you everyone for your information you shared. CLASS ACTION LAWSUIT NEEDED

  3. gWEN lONGCRIER says:


  4. James Howard says:

    Seterus and QBE done us wrong also because they charged our escrow account for lenders placed insurance threatening to foreclose on our home QBE sent us a letter stating the insurance was cancelled and they still charged our escrow account for the preiums, we sent a letter the Seterus and QBE and we recieved a letter back from them dening everything, I even sent the threatening letter we recieved on the foreclosure to seterus and they still denied they threatened us . If you have a morgage with counrtywide keep a check on your morgage ,when they were our lender we got a modified loan that was never signed for by my husband or me ,

  5. Judith (Rene') McKay says:

    Fannie Mae and the government! That’s who wins this mortgage company is a joke as all that are involved with Fannie Mae and Freddie Krugar!

  6. kim bradford says:

    I see all these class action law suits but who is reaping the rewards not the victims

  7. mike Drouin says:

    The so called , ” Mortgage Crises ” is nothing but a BIG LIE ! and if you continue telling it , or act like it isn’t , people will begin to believe you . From the time you thought you were negotiating a Mortgage , to the time the Bank steals your home , your living a LIE . Find out what the , ” INTENTIONAL TORT OF CONVERSION ” means….. Everyone that this happened to has a right by LAW to Rescind the bogus Mortgage contract and Note because a ” Securities Contract ” was negotiated without your knowledge and consent , therefore there cannot be consummation of a contract and gives you ground to RESCIND !!!

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