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BofA To Pay $31M To Settle Force-Placed Insurance Suit

Posted: April 21, 2014
By: Michael Lipkin
Outcome: Settlement
Practice Areas: Consumer Protection, Insurance & Financial Products & Services, Lending Practices & Borrowers’ Rights

Bank of America NA has agreed to pay $31 million to settle a putative class action alleging the bank illegally forced homeowners to buy excessive amounts of flood insurance, according to a Monday ruling in Oregon federal court.

U.S. District Judge Michael Simon preliminarily approved the settlement involving Bank of America and BAC Home Loans Servicing's force-placed insurance practices in a Thursday decision, the opinion of which was published Monday.

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