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Baron & Budd Investigating Potential Home Insurance Fraud
DALLAS (June 22, 2011) –The national law firm of Baron & Budd, P.C. is investigating a common practice among banks, mortgage companies and loan servicers that could be costing homeowners millions of dollars. The practice is called “forced-placed” or “lend-placed” insurance and often affects homeowners who can least afford the increased expense.
Forced-placed insurance occurs when a homeowner neglects to pay insurance premiums on time or fails to obtain certain types of hazard insurance, such as flood, wind, hail or tornado. The mortgage company holding the note then purchases insurance on the homeowner’s behalf and charges them for the premiums without any consultation regarding the insurance company or the costs of coverage.
Unfortunately, most of the time forced-place insurance is significantly more expensive than homeowner purchased insurance. A number of mortgage companies, banks and loan servicers have been identified as possible practitioner of forced-placed insurance, including JP Morgan Chase, Bank of America and Wachovia.
“Consumers may not realize it, but banks like JP Morgan Chase and Wachovia actually receive a commision on the sale of the insurance policy, and frequently purchase the new, inflated policies from insurance companies they own,” said Roland Tellis, Baron & Budd shareholder. “It’s just one big insurance scam that’s making these banks money while hurting homeowners.”
If you or someone you know has been affected by forced-placed insurance, call Baron & Budd at 866.844.4487 or email us at firstname.lastname@example.org for more information.
About Baron & Budd, P.C.
The law firm of Baron & Budd, P.C., with offices in Dallas, Baton Rouge, Austin, Los Angeles and Miami, is a nationally recognized law firm with a 30-year history of “Protecting What’s Right” for people, communities and businesses harmed by negligence. Baron & Budd’s size and resources enable the firm to take on large and complex cases. The firm represents individuals, government and business entities in areas as diverse as water contamination, Gulf oil spill, Qui Tam, California Proposition 65 violations, dangerous medications and medical devices, Chinese drywall, insurance claims, commercial litigation, securities fraud and asbestos-related illnesses such as mesothelioma.