The Real Deal Miami

JPMorgan Chase settles insurance suit

Lender agrees to $300M deal over forced-place claims
March 03, 2014 12:45PM

Gavel-new315-304A federal judge in Miami has approved a $300 million deal between JPMorgan Chase and 1.3 million homeowners to resolve claims of overcharging for forced-place insurance.

Chief U.S. District Judge Federico Moreno authorized the settlement on Friday, Daily Business Review reported. The deal includes an additional $650 million of injunctive relief through policy changes to eliminate the forced-placed practice. The homeowners claimed Chase placed more than $2.3 billion in coverage between 2008 and the present.

Attorneys told the Review that more settlements with other lenders, including Bank of America, Citibank and HSBC, could be on the way. Wells Fargo and QBE Insurance Group already agreed to a $19.3 million deal to compensate 30,000 borrowers. [Daily Business Review]Eric Kalis