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Class Says JPMorgan Made Them Buy Excessive Flood Coverage

Posted: May 25, 2012
By: Eric Hornbeck
Source: Law360
Practice Areas: Consumer Protection, Insurance & Financial Products & Services

A class of homeowners sued JPMorgan Chase & Co. affiliates JPMorgan Chase Bank NA and Chase Insurance Agency Inc. in New York on Thursday, accusing them of forcing homeowners to buy more flood insurance than they needed.

Chase Bank, as the loans' servicer, has forced homeowners with mortgages it services too buy more flood insurance than the government or their actual lenders require or than is necessary to protect the lender's interest in the unpaid principal loan balance, the complaint alleges.

...

The named plaintiff, Mathew Scheetz, has a loan with Fannie Mae that is serviced by Chase and meets Fannie Mae's flood insurance requirements, the complaint said.

But Chase has used a "highly automated" scheme to force Scheetz and other class members to buy more expensive insurance, according to the complaint.

View the full article here.