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JPMorgan Chase Homeowners Insurance Class Action Lawsuit

By Kimberly Mirando

 

Chase BankA federal class action lawsuit accuses JPMorgan Chase Bank of taking kickbacks from providers of forced-placed homeowners insurance, and from their own affiliates, and forcing borrowers to pay for unnecessary insurance.

The Chase Bank class action lawsuit alleges that throughout the class period, Chase engaged in unlawful, abusive and unfair practices with respect to force-placed insurance, including receiving fees, payments, commissions, improper reinsurance premiums and/or other things of value from providers of force-placed insurance; providing force-placed insurance from their own affiliates at a substantial, improperly high cost to the borrower; and forcing borrowers to pay for unnecessary insurance.

According to the class action lawsuit:

“In the event that borrowers fail to maintain their hazard insurance policies, rather than attempt to maintain delinquent borrowers’ existing policies, Defendants commonly choose to replace borrowers’ insurance policies with more expensive ones, known as ‘force-placed’ insurance policies. Such policies provide less coverage and are substantially more costly than the borrowers’ original policies, while providing lucrative financial benefits to servicers and/or their affiliates. Further, such policies often provide unnecessary or duplicate coverage, in that they are improperly backdated to collect premiums for time periods during which the mortgagor has absolutely no risk of loss.”

The Chase homeowners insurance class action lawsuit is brought on behalf of a nationwide class of anyone who’s ever had a residential mortgage loan or line of credit with JPMorgan, Chase Bank or Chase Home Finance and had hazard insurance force-placed upon the secured property by the bank between June 16, 2007 and the final date of this action. It also includes a subclass of all California residents who had the same unlawful action taken against their California property.

The Chase class action lawsuit is seeking compensatory, consequential and general damages; restitution; court fees, and more for violating the Real Estate Settlement Procedures Act (RESPA), breach of contract, violating California’s Unfair Competition Law and Unjust Enrichment.

A copy of the JPMorgan Chase Bank Forced-Placed Insurance Class Action Lawsuit can be read here.

The case is Patricia McNeary-Calloway v. JPMorgan Chase Bank, N.A. and Chase Bank USA, N.A., Case No. 11-cv-3058, United States District Court, Northern District of California.

 

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Updated June 23rd, 2011

 

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7 Comments

  • Anonymous August 2, 2011

    JPMorgan Chase Homeowners Insurance Class Action Lawsuit
    Please include Louisiana victims in this lawsuit. They did the same thing to me twice, and they still have not removed them even after I proved that I already had more than sufficient coverage for both homeowners and flood insurance. They added nearly $6000 in premiums to a $10,000 home equity loan that was almost paid off.

  • Anonymous August 14, 2011

    Chase has attempted to force-place an exorbitantly priced flood insurance policy on my mortgage EVERY year for the past five years. Upon the renewal date of my continuously maintained personal policy, they pounce on the opportunity to identify me as “uninsured”. I have now learned that I must send the proof of insurance by certified mail to precipitate an acknowledgment letter. It often takes three to four months to clear things up. This year, they “lost” my information and temporarily insured me midyear, with a copy of my in-force policy IN THEIR HANDS – per my certified letter. Fraud, plain and simple.

  • Anonymous November 11, 2011

    Recently I went to pay my home owners insurance and discovered it was paid for me courtesy of Chase bank – I now have an escrow account that I previously didn’t have. In contacting my insurance company they tell me that they went as far as to request that the bill go to them on going and I was NOT delinquent. They had no business do that.

  • Anonymous January 24, 2012

    I am in foreclosure by Chase Bank and I used my GI Bill for the loan and Chase had me doing the loan modification paper work over and over again the same papers to the point I just gave up knowing chase had NO intention of ever loaning out any of the 25 billion tax dollars they were given to make loan modification. I would like to get my name on the class action suite!!!

  • Anonymous May 11, 2012

    I as well had submitted information numberal of times but was told each time, that my information had been misplaced, However, during that process, my house went into forecloser. Later I did get a modification loan, but it when up almost $500.00, money we didn’t, however, we had to pay it in order to keep our home. I applied again about four months ago, and was told through a letter that I will need at lease 650 or higher credit score in order to get a Modification loan. To me that was another hit in head. I began very angry, along with my husband.

  • Anonymous May 25, 2012

    Is Florida on this, This has happened to me EVERY YEAR With Chase .. How do i Get in on this. !!

  • Glenn W. Heisler March 27, 2014

    In 2009 I was in foreclosure with JP Morgan Chase Bank,N.A .I asked if they could lower my payments ,that I was a disable veteran and have a disable son, and need help with my payments. Two -Three weeks latter I get a packet in the mail and they want to rise my payments from 2000a month that I didn’t miss any payments on to 2500 a month. Then they would not let me short sale my house for 149,000.They told me it was worth more. It ended up selling for 75,0000.Thats just part of it?

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