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On December 23, 2002, we filed the first nationwide class action of its kind against Washington Mutual for wrongfully placing “forced insurance” on homeowners with a Washington Mutual mortgage. The lawsuits addresses Washington Mutual’s improper servicing of clients’ mortgages which caused original insurance policies to lapse and resulted in the placement of forced insurance at exorbitant rates and costs to homeowners.
The Plaintiffs allege that Washington Mutual breached its contractual duty to competently administer mortgage escrow accounts when it did not pay the original homeowner’s insurance premiums, allowed the original policies to lapse and force placed insurance, at excessive rates on Plaintiffs’ homes.
Plaintiffs’ Complaint also sets forth allegations that Washington Mutual violated Federal law when it failed to provide homeowners with the opportunity to select their own forced insurance provider as required by law. Rather, Washington Mutual selected American Security Insurance as the forced insurance provider. Plaintiffs allege that American Security, in return, paid kickbacks to Washington Mutual in the form of reinsurance premiums.
Our primary goals in this case are to:
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seek compensation for homeowners who had forced insurance wrongfully placed on their homes;
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require Washington Mutual to adopt proper procedures to ensure that insurance premiums are paid out of the escrow account to the original insurance provider; and
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require Washington Mutual to notify homeowners of any lapse in their insurance and afford them the opportunity to select their own forced placed insurance provider.
If you or a family member have had a mortgage with Washington Mutual, had your original homeowner’s insurance lapse and had forced insurance placed on your home and would like more information concerning your legal rights, we encourage you to contact an attorney at Touhy & Touhy, Ltd.
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