SOURCE: Sarraf Gentile LLP

August 30, 2012 15:30 ET

Sarraf Gentile LLP Announces Investigation Into Home and Auto "Force-Placed Insurance" Practices

NEW YORK, NY--(Marketwire - Aug 30, 2012) - Sarraf Gentile LLP is investigating banks, insurers and others for improper "force-placed insurance" or "collateral protection insurance" practices.

Under these schemes, certain mortgage or auto loan agreements require borrowers to buy and maintain insurance coverage on their home or car. If insurance coverage lapses, however, the bank, lender or loan servicer can force the home or car owner to buy, at their own expense, additional excessive and expensive insurance. The bank or lender may receive kickbacks from the insurance company for forcing the home or car owner to buy such excessive additional coverage. 

The New York State Department of Financial Services is investigating such alleged practices and has issued subpoenas to at least 18 mortgage services, 12 insurers and 20 affiliate insurance agencies. Also, class action lawsuits have been filed against banks and loan servicers for forcing homeowners into purchasing unfair insurance policies in violation of their mortgage contracts and applicable law. Sarraf Gentile LLP has not filed such a lawsuit. 

If you have information about any of these home or auto force-placed insurance practices, or wish to talk to us about your rights in this matter, you may wish to contact us. Sarraf Gentile LLP has extensive experience litigating class actions throughout the country and has recovered millions of dollars on behalf of injured consumers.

NOTE: Sarraf Gentile LLP pledges to donate 10% of any net attorneys' fees earned in connection with this matter to worthy unaffiliated charities.

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