Status: closed
Wells Fargo (Force-Placed Insurance)
Defendant: Wells Fargo
Wells Fargo agreed to a settlement regarding its forced-placed hazard insurance practices on homeowners. The lawsuit alleges that Wells Fargo forced consumers to purchase unnecessary expensive hazard insurance (“LPI Policy”). The bank received kickbacks from the insurers for choosing the more-expensive policies for the homeowners. If changes to the LPI Policy occurred on or before March 24, 2012, borrowers may be eligible to receive back 11% of the net premium. If changes to the LPI Policy occurred after March 24, 2012, borrowers may be eligible to receive back 7% of the net premium.