Consumers charged for a Seterus issued lender-placed insurance policy between August 19, 2010 and November 4, 2016 might be eligible to receive a cash payout as the result of a class action settlement. The first legal stipulation involves the requirement that you paid Seterus for a part of the policy or you paid the entire premium.
What is Lender-Placed Insurance?
Also referred to as forced-placed insurance, lender-place insurance is disaster insurance a lender places on a homeowner’s property whenever the homeowner fails to purchase a homeowner’s insurance policy the lender finds acceptable. As the third-party in the insurance arrangement, Seterus sent payments to the insurer for the disaster insurance coverage and in turn, charged borrowers for the premium on the coverage. Although the concept of lender-placed insurance does not break any law, lenders cannot impose the insurance to receive illegal financial benefits.
In the Seterus class action lawsuit, plaintiffs charged Seterus received kickbacks from insurers that imposed the forced-placed insurance policies on homeowners. The kickbacks came in the form of generous commissions. Another charge filed in the class action lawsuit alleges the lender-placed insurance included unwarranted rates and breadth of coverages.
What You Need to Know
Eligible class member of the Seterus lender-placed class action settlement encompass borrowers living in the United States who were charged for lender-placed insurance by Seterus during the eligibility period. The class action settlement specifically applies to forced-place insurance that covers wind, flood, or hazard-related damage.
Monetary awards vary in this case, as the amount each class member receives depends of the type of lender-place insurance imposed by Seterus, as well as the date Seterus placed the insurance. Class members that owe the net premium will receive an account credit, while a check goes to class members who sent at least one full mortgage payment after they created or adjusted an escrow account to accommodate the lender-placed insurance policy.
Claim Form Deadline
The claim form deadline is unclear as of April 28, 2017. The Seterus class action settlement website states the deadline will be “60 days after the Final Settlement Date and no earlier than July 16, 2017.” The final hearing was on April 14, 2017. Class members who have not filed a claim from should visit the class action settlement website at www.EdwardsSettlementInfo.com to verify the deadline date for the case.
The Seterus class action lawsuit goes by the case name “Edwards, et al. v. Seterus Inc., et al., Case No. 1:15-cv-23107-DPG, in the U.S. District Court for the Southern District of Florida
Class Counsel
Adam M. Moskowitz representing Kozyak Tropin & Throckmorton PA
Aaron S. Podhurst representing Podhurst Orseck PA
Lance A. Harke representing Harke Clasby & Bushman LLP
HARKE CLASBY & BUSHMAN LLP
Defense Counsel
Allen Paige Pegg representing Hogan Lovells US LLP
