A lawsuit that accuses both Citigroup (NYSE: C) and MidFirst
Bank of Oklahoma City of forcing homeowners to purchase flood
insurance in excess of amounts required by law may advance, a
federal judge in Utica, N.Y., has ruled.
The banks must face allegations by Gordon Casey, a borrower in
Syracuse, N.Y., and Duane Skinner, a borrower in Maryland, of
wrongdoing in the force-placing of flood insurance on their homes,
U.S. District Judge David Hurd held Wednesday.
Carson, a lawyer for the plaintiffs, said in a news release
that the banks had engaged "in a classic bait-and-switch, in which
borrowers are informed of one set of flood insurance requirements
at closing and then, later, the banks demand additional, unwanted
flood insurance coverage."
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