Status: closed
LoanCare LLC (Forced-Placed Insurance)
Defendant: LoanCare LLC
LoanCare LLC agreed to a settlement regarding its lender-placed insurance practices on homeowners. The lawsuit alleges that LoanCare LLC forced borrowers to purchase unnecessary expensive hazard, flood, flood gap or wind-only insurance. The mortgage servicer received kickbacks from the insurers for choosing the more-expensive policies (“LPI Policy”) for the homeowners. Borrowers who paid for flood or wind LPI Policy between January 1, 2009 and October 19, 2016 or for a hazard LPI Policy on or after June 1, 2013 may be eligible to receive back up to 5% of the premium. Borrowers who paid for hazard LPI Policy on or before May 31, 2013 may be eligible to receive back up to 8% of the premium.