Roundpoint Forced Place Insurance Investigation

What is Force-Placed Insurance?

Force-Placed Insurance is a practice through which financial services companies (banks, lenders, and loan servicers) force a borrower to maintain insurance on the borrower's residence. Most mortgages require the maintenance of a homeowners insurance, flood insurance, or wind insurance policy on the residence subject to the mortgage. If the insurance policy lapses for some reason, the financial services company will “force place” an insurance policy to “protect their interest.” The premiums for force-placed insurance policies typically cost many times the amount of a normal insurance policy. Financial services companies claim these excessive premiums are the responsibility of the borrower and typically tack them onto the borrower’s loan. This is true for force-placed hazard insurance, force-placed flood insurance, and force-placed wind insurance.

Why Do I Have Force-Placed Insurance?

If a borrower is in default, or near default, a financial services company will typically force-place insurance on the borrower’s residence if the borrower allows the property's insurance policy to lapse. Many borrowers have also reported these force-placed insurance policies being placed against them retroactively, which could be a violation of state or federal consumer protection laws.

How can I recover the premiums charged to me through Force-Placed Insurance?

If your think your bank, lender, or loan servicer has charged you excessive premiums for force-placed insurance, you may be able to recover for the excessive premiums that have been charged to you. Please contact our Consumer Protection Attorneys at (202) 470-3520 to discuss the details and your potential rights to recovery. You can also complete the form on this page, and a lawyer will get back to you right away. Our lawyers are currently reviewing complaints about Roundpoint and other smaller lenders and loan servicers.

Attorneys Committed to Consumer Protection

The attorneys at Migliaccio & Rathod have significant experience in representing consumers in class action cases against large corporations, including cases involving unfair & deceptive trade practices. More information about our current cases and investigations is available through our blog.