Consumer Finance Insights
September 14, 2016

Massachusetts AG Settles With Insurance Company Over Allegedly Improper Force-Placed Insurance

On September 7, 2016, the Massachusetts Attorney General announced a settlement with an insurance company requiring “refunds for Massachusetts homeowners whose mortgage lenders wrongly force-placed the consumers with [the insurance company] despite the fact that the consumers already had home insurance with other companies, as well as consumers who were overcharged by [the insurance company] because their homes were misclassifid as commercial properties.”  Under the settlement, the company agreed to pay full restitution, which could total more than $1 million.  The company will also pay $375,000 as a penalty to the state.  This is the third similar settlement by the Massachusetts Attorney General in the last year (information on earlier settlements can be found here and here).