Citigroup Settles Force-Placed Insurance Suit

Posted by Patrick Barnard on February 07, 2014 No Comments
Categories : Residential Mortgage

Citigroup Inc. will reportedly pay $110 million to homeowners who were overcharged on force-placed insurance premiums.

The settlement comes as the result of a class action lawsuit filed in a New York federal court on behalf of thousands of homeowners, Reuters reports.

As per the agreement, which is still subject to court approval, affected homeowners will be compensated 12.5% of the premium upon submitting a claim.

In addition, Citi must stop accepting commissions for force-placed insurance for a period of six years from the effective date of the settlement.

In September, JPMorgan and Assurant agreed to a $300 million settlement to resolve claims that homeowners were overcharged on force-placed insurance.

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