BOSTON--(BUSINESS WIRE)--Gilman Law LLP is pleased to announce that CitiBank NA has agreed to pay $110 million to settle a force-placed insurance class action lawsuit that had accused the bank of engaging in and profiting from predatory practices that imposed excessive wind, flood and hazard insurance policies on homeowners throughout the country. (Gordon Casey, Duane Skinner and Celeste Coonan, individually and on behalf of all others similarly situated vs Citigroup Inc, Case No. 12-00820, U.S. District Court, Northern District of New York)
According to Gilman Law LLP, the settlement of this force-placed insurance lawsuit is extremely good news for consumers who were allegedly victimized by CitiBank’s predatory practices. However, tens of thousands of property owners around the country have yet to receive any type of restitution from other lenders and mortgage services that allegedly engaged in similar tactics. To that end, Gilman Law LLP continues to investigate the force-placed insurance market, prosecute additional actions and is urging any homeowner who may have been victimized by their lender to contact the Firm today, especially if they had a mortgage held by one of the following banks:
- Bank of America
- Green Tree
- US Bank
If these or another lender held a mortgage on your home and force placed wind, flood or hazard insurance on your property, it is of the utmost importance that you contact Gilman Law LLP today, at 1-888-252-0048 to preserve your right to compensation.
The Force-Placed Insurance Market
Standard mortgage contracts generally allow lenders to impose, or force place, hazard, wind or flood insurance on a property in cases where the owner has allowed required coverage to lapse. But in recent years, it has become apparent the banks, mortgage servicers, and insurers took advantage of this ability and inflated the cost of forced placed insurance beyond justification. These outlandish prices were driven by the commissions (critics call them kickbacks) mortgage companies accepted from insurers for the privilege of arranging force-placed policies. These kickbacks were ultimately passed on to property owners, who according to one New York State investigation, were often charged premiums that were two to ten times higher than those charged for voluntary insurance. At the same time, these needlessly expensive policies almost always offered far less protection than standard policies.
While regulators have taken some steps to reign in the force-placed insurance market, the prosecution of these cases is important to recover damages for those who have already suffered serious financial harm due to these predatory practices. Like the property owners involved in the CitiBank settlement, Gilman Law LLP believes that these consumers will need to look to the courts. However, affected property owners have only a brief time in which to act, and it is important that they contact Gilman Law LLP today to ensure they preserve their right to recovery. Free, no obligation case evaluations are available by calling Toll Free at 1-888-252-0048, or by visiting www.Gilmanlawllp.com
About Gilman Law LLP
Gilman Law LLP, a leading consumer law firm with offices in Florida and Massachusetts, has been recognized for delivering successful results to their clients across a broad range of claims stemming from consumer product injury, mass tort, and class action lawsuits. For over 32 years, the Gilman Law LLP team of highly experienced lawyers has earned renown for tireless work on behalf of their clients on many of today's most challenging and important legal issues.