[January 31, 2013]

Gilman Law LLP Force-Placed Insurance Action Proceeding in Federal Court Against CitiMortgage, Citigroup, American Security and Assurant, Inc.

Gilman Law LLP, one of the nation's leading consumer protection law firms, is urging borrowers to contact the firm if they have had homeowner's, hazard, flood or wind insurance force-placed on their property by their lender or mortgage servicer. A force-placed insurance lawsuit is currently proceeding in federal court against CitiMortgage, Citigroup, American Security and Assurant, Inc. (S.D. Florida, Case No. 1:12-CV-24378) The new scrutiny being placed on the force-placed insurance market may provide an opportunity for homeowners victimized by questionable practices to pursue restitution. However, it is vital that affected property owners contact Gilman Law LLP today to ensure their claim is not time-barred by their state's statute of limitations.

Banks and mortgage servicers impose, or force-place, insurance policies on homes when a borrower has allowed a policy to lapse. Depending on the terms of the mortgage, homeowner's, hazard, flood, and wind insurance may be force-placed on a property in such instances. While this practice is legal, a number of regulatory investigations have raised questions about predatory practices that lenders and mortgage services may engage in when force-placing insurance. For example, a recent investigation by the New York Department of Financial Services found that high rates of force-placed insurance appear to be due in part to relationships between and payments to insurers by banks and their affiliates, including mortgage services and insurance agents and brokers. As much as 15 percent or more of premiums collected by force-placed insurers flow to the banks through insurance agents affiliated with the banks, the State said.

The force-placed insurance action proceeding in federal court against CitiMortgage, Citigroup, American Security, and Assurant, Inc. alleges the Defendants engaged in deceptive practices when force-placing insurance policies on borrowers, including violations of the Truth in Lending Act, the RICO Act, and other consumer protection laws. Gilman Law is now investigating similar claims on behalf of consumers who have allegedly been charged exorbitant rates for force-placed insurance policies by:

• CitiGroup
• CitiMortgage
• American Security
• Assurant
• Bank of America
• Wells Fargo (News - Alert)
• HSBC
• Deutche Bank
• SunTrust
• GMAC

In November, Gilman Law LLP entered an appearance on behalf of a plaintiff in a force-placed insurance lawsuit against CitiMortgage, and successfully defended against a Motion to Dismiss, as well as a Motion for Sanctions the bank filed against the plaintiff for proceeding with her claim. The plaintiff, who claims she was the victim of CitiMortgage's predatory force-placed insurance practices, had been pursuing a pro se action against the bank. In rejecting both of CitiMortgage's motions, Judge Spencer Eig of the Eleventh Judicial Circuit of Miami-Dade County, Florida, allowed the claim against CitiMortgage to proceed with the assistance of Gilman Law LLP. (Case No. 11-185185-CA (News - Alert))

Gilman Law LLP is offering free legal evaluations to property owners who may be victims of predatory force-placed insurance practices. Free, no obligation case evaluations are available by calling Toll Free at 1-888-252-0048, or by visiting Gilmanlawllp.com.

About Gilman Law LLP

Gilman Law LLP, a leading national law firm with offices in Florida and Massachusetts, has been recognized for delivering successful results to their clients across a broad range of claims stemming from consumer product injury, mass tort, and class action lawsuits. For over 32 years, the Gilman Law LLP team of highly experienced lawyers has earned renown for tireless work on behalf of their clients on many of today's most challenging and important legal issues.

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