- Created on Monday, 11 February 2013 14:24
Six months ago we spread the word that the Consumer Financial Protection Bureau (CFPB) was going to take measures in 2013 to protect homeowners against force placed insurance.
According to ConsumerFinance.gov, these new/approved rules will go into effect in early 2014. “Under the new rules, servicers need a reasonable basis to believe borrowers lack their own insurance, and they must determine this on a case-by-case basis. The servicer also has to notify the borrower before purchasing the force-placed insurance policy and annually before renewing the policy.”
The original goal of the CFPB, per their April 2012 press release with regards to forced insurance, was to “…consider a rule that would give the consumers more rights including requiring servicers to give advance notice and pricing information before charging consumers for this insurance.”
Time will tell if these measures will be enough but perhaps between the CFPB’s rulings along with the victims of force placed insurance stepping forward and fighting back, these predatory lending practices can be a thing of the past.
For those who are currently (or have been in the past) a victim of force placed insurance, compensation may be available. Some of the larger lending financial institutions that are allegedly guilty of this practice include, but are not limited to, SunTrust, Bank of America, JP Morgan, Chase Bank, Citi, and Wells Fargo.
[Speaking of Wells Fargo, this was just brought to our attention – Family angered by Wells Fargo's auto-enrollment for AHS $629 annual warranty - doesn’t do much to reinforce their already questionable character.]
While banks are certainly entitled to protect their assets, there are many cases where we believe they forced insurance upon their clients at unreasonable rates. Click to learn more about forced insurance and to see if you can get some or all of that money back in your pocket. We are currently offering free case evaluations.