Tuesday, June 07, 2016

Another Bankster Faces Class Action Allegations That It Screwed Over Homeowners With Inflating Costs Of Force-Placed Insurance Through Illegal Kickbacks

In Chicago, Illinois, the Cook County Record reports:
  • Seterus, one of the country’s largest servicers of home mortgages, has been hit with a class action lawsuit alleging the company has overcharged its customers for mandatory insurance coverage by partnering with one insurance provider, who then kicks back a portion of the purportedly overpriced insurance policies to Seterus.

    On May 24, plaintiff Jolanta Rozwadowska filed the putative class action in Cook County Circuit Court against Seterus Inc. and QBE First Insurance Agency over the alleged kickback scheme.
    [T]he complaint said in Rozwadowska’s case, and in the case of potentially thousands of others homeowners in Illinois and elsewhere, Seterus “abused the discretion” granted it under the mortgage loan agreement, force-placing insurance policies that are overpriced because, according to the complaint, “a considerable portion” of the premium charged to borrowers is “kicked back to Seterus and/or QBE First.”

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