BOSTON--(EON: Enhanced Online News)--Gilman Law LLP, one of the nation's leading consumer protection law firms that represents property owners in force-place insurance lawsuits, applauds a new proposal by New York Governor Andrew Cuomo to regulate the force-placed insurance market. According to a statement issued on September 19, 2013, by the New York State Department of Financial Services, the new regulations will, among other things, eliminate kickbacks many insurers paid to banks when they force-placed hazard, wind and/or flood insurance on a property. This practice pushed up the price of force-placed insurance by creating incentives for the banks to buy policies with high premiums. As a result, countless homeowners who had insurance force-placed on their property were driven into foreclosure and/or had their credit ruined because they were unable to bear the financial burden inflicted on them as a result of these needlessly-high premiums.
“troubling web of kick-backs and payoffs at certain force-placed insurers helped push premiums sky-high for many homeowners.”
Gilman Law LLP, which is representing numerous consumers in force-placed insurance lawsuits, is encouraged by New York’s proposal. As a result of the scrutiny being placed on the force-placed insurance market, victimized consumers may finally have an opportunity to obtain restitution from the banks and insurers that took advantage of them. Gilman Law LLP is investigating forced-placed insurance lawsuits against a number of lenders, including:
- Bank of America
- Green Tree
- Citizens Bank
- US Bank
- Ally Financial, Inc., formerly GMAC
- Insurers: Assurant, American Security, QBE, Balboa
If any of these lenders or servicers held a mortgage on your home and force-placed wind, flood or hazard insurance on your property, it is of the utmost importance that you contact Gilman Law LLP today, at 1-888-252-0048 to preserve your right to compensation. Do so today, before your state’s statute of limitations runs out and your claim is time barred.
Although many mortgage contracts allow a lender to force-place, or impose, an insurance policy on a property when the required coverage has been allowed to lapse, our recent investigations in New York and elsewhere have made it apparent that with the advent of the housing crisis, insurers, banks and mortgage servicers engaged in predatory practices when imposing insurance on homeowners, many of whom were already under financial stress. For example, New York State’s investigation found that premiums charged to homeowners for force-placed insurance can be two to ten times higher than premiums for voluntary insurance, while offering property owners far less protection than policies they could have purchased on their own. The probe also revealed that a “troubling web of kick-backs and payoffs at certain force-placed insurers helped push premiums sky-high for many homeowners.”
A number of big banks, mortgage servicers, and insurers are already named defendants in force-placed insurance lawsuits filed in courts throughout the country. These litigations may be approaching a watershed moment that will allow the victims of predatory force-placed insurance practices an opportunity to obtain compensation for the financial harm they have suffered. According to Gilman Law LLP, in some cases, property owners may be entitled to compensation equaling as much as 20% of the premiums they were assessed for force-placed hazard, wind or flood insurance. However, affected consumers have only a brief time in which to act, and it is important that they contact Gilman Law LLP today to ensure they preserve their right to recovery. Free, no obligation case evaluations are available by calling Toll Free at 1-888-252-0048, or by visiting Gilmanlawllp.com.
About Gilman Law LLP
Gilman Law LLP, a leading national law firm with offices in Florida and Massachusetts, has been recognized for delivering successful results to their clients across a broad range of claims stemming from consumer product injury, mass tort, and class action lawsuits. For over 32 years, the Gilman Law LLP team of highly experienced lawyers has earned renown for tireless work on behalf of their clients on many of today's most challenging and important legal issues.