Loan-Care Force Placed Insurance Settlement

By on February 10, 2017

Force-Placed insurance refers to the purchase of an insurance policy by a loan services after some triggering event, like failure to maintain the original insurance or defaults.

Numerous class actions have targeted companies for abusing the  right to force-place insurance, which often results in the purchase of policies that cost more than the original policies, often for no reason that benefits the consumer that pays the policies.  Sometimes, the loan servicer receives illegal kickbacks from the insurance company for saddling the consumer with an expensive policy.

One class action recenty settled is against LoanCare LLC, which was alleged to have received kickbacks from the insurer Assurant.

The class is defined as follows according to the website for the settlement, which also lists the deadline to subimt claims as June 16, 2017:

Class Members of the LoanCare force-placed insurance settlement include “all borrowers in the United States who, within the Class Period (as defined below) were charged by LoanCare under a hazard, flood, flood-gap or wind-only LPI Policy for Residential Property, and who, within the Class Period, either (i) paid to LoanCare some or all of the Net Premium for that LPI Policy or (ii) did not pay to and still owe LoanCare the Net Premium for that LPI Policy.”

The Class Period is Jan. 1, 2009 through Oct. 19, 2016.

More information is available from: https://mcneilsettlementinfo.com/