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Citibank Agrees to Pay $110M to Settle Force-Placed Insurance Suit

Citibank, N.A., and CitiMortgage, Inc. have agreed to settle a putative class action lawsuit over force-placed insurance. Under the settlement, members of the proposed settlement classes will be entitled to receive more than $110 million in refunds of FPI premiums that were charged to their accounts by Citi.

By Steven A. Meyerowitz, Esq., Director, FC&S Legal | Updated on February 17, 2014

Citibank, N.A., and CitiMortgage, Inc. (together, Citi), have agreed to settle a putative class action lawsuit over force-placed insurance (FPI). Under the settlement, members of the proposed settlement classes will be entitled to receive more than $110 million in refunds of FPI premiums that were charged to their accounts by Citi.

Specifically, settlement class members who were charged for force-placed hazard insurance will receive back 12.5% of their force-placed hazard insurance premiums upon submitting a claim, which represents over 83.3 percent of the allegedly unlawful commissions that Citi’s affiliate received on force-placed hazard insurance (15% of the premium), from its force-placed insurance vendor.

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