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JPMorgan Agrees To Pay $22M In Force-Placed Insurance Suit

Posted: December 18, 2013
By: Lance Duroni
Outcome: Settlement
Practice Areas: Consumer Protection, Insurance & Financial Products & Services, Lending Practices & Borrowers’ Rights

JPMorgan Chase Bank NA has agreed to pay $22.1 million to resolve a proposed class action accusing it of imposing pricey and unnecessary flood insurance on homeowners whose mortgages are serviced by the bank, according to documents filed Tuesday in California federal court.

The deal also contains provisions designed to rein in JP Morgan's force-placed flood insurance practices, including a three-year ban against the bank requiring homeowners to carry flood insurance in excess of the federal minimum standard, the plaintiffs said in a motion seeking preliminary approval of the settlement.

"Class counsel have concluded that the settlement is fair, reasonable, adequate, and in the best interests of plaintiffs and the settlement class members," the motion said.

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