Chase added Flood insurance without my knowledge

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PostPosted: Mon Jul 19, 2010 3:13 pm   Post subject: chase bank and flood insurance  

I bought my house 12 years ago and was not in the flood zone. My house is 87 years old and has never been flooded or close to being flooded. Chase Bank bought out Bank one witch is who had my loan first. I HATE Chase Bank they always giving you the run around if you get someone who speaks english. I never got anything telling me I needed flood insurance. When I got my May bill there was a $221.30 more they wanted for flood insurance, I thought this can't be right so I only made my loan payment. By May 20th I'm getting a letter and phone calls telling me I didn't make my payment and was imformed that they use my principal money for flood insurance. So I found out they are charging me $250,000.00 for what my housed is worth, that $2652.00 a yaer and $221.30 a month. My replacement on my house is only $86,500.00 if it would burn down. BIG BIG difference. So I went and got flood insurance with my homeowners insurance for what I owed on my loan. Sent that in. Then went and paid June payment and the principal again for May. Half way through the month another letter and phone calls 3 and 4 times a day every day. Still late they tell me. They told me that flood insurance had to be the same as replacemant value not that the loan is for. So I paid July payment paid everything up to date, and paid the extra $265.05 for May and June, so I paid my May principal 3 times and June's 2 times and July's once. So I've paid $663.90 for flood insrance for 3 months and they cancelled the insurance and I have to pick up more with my insurance guy but they wont mail me back my money. They put it on my principal and now I don't have the money to pay for it. I'm so tried of Chase Bank screwing people over.


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PostPosted: Sat Jul 31, 2010 12:26 pm   Post subject: Class Action Against Chase on Flood Insurance  

There is a class action suite against Chase on this Forced Flood Insurance farce. Everyone should hop aboard and give Chase what they truly deserve.



On June 17, 2010, we filed a Complaint on behalf of a proposed class of New York homeowners who Chase required to purchase flood insurance in connection with a mortgage loan or line of credit. The lawsuit alleges that Chase unfairly requires its customers to purchase and maintain unnecessary and excessive flood insurance for their property in amounts greater than necessary to secure the outstanding balance of their loan or HELOC. Plaintiff seeks, among other things, reimbursement of all unfair and excessive premiums.



The following staff from Nichols Kaster, PLLP are handling this case:


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PostPosted: Mon Sep 27, 2010 4:03 pm   Post subject:   

Chase is doing this as a revenue generating tactic. I have property in fllod plane, but I by buy my own insurance--which exceeds Chase's requirements--but I get the Chase flood insurance put on my loan about twice per year. I send them a copy of my declarations page and a copy of an appraisal--and I do this at least twice per year.

At a minimum, Chase is recouping interest on the added flood insurance and it is clearly a profit activity for them.

they get a copy of my flood declarattions page each year. they never have that on file, according to them, but they do know how much additional flood insurance to hit me with.

I'd guess they are not only getting addtional interest money from this, but my best guess would be they are getting part of the premium for the additional flood insurance--or some kind of fee from the carrier.

I've talked to some attorneys, but none have wanted the case on contigency as of yet. If there are others out there with similar stories, contact Jere Beasley in Alabama & do an online consult with them


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PostPosted: Mon Sep 27, 2010 4:46 pm   Post subject:   

Quote:
Chase is doing this as a revenue generating tactic. I have property in fllod plane, but I by buy my own insurance--which exceeds Chase's requirements--but I get the Chase flood insurance put on my loan about twice per year. I send them a copy of my declarations page and a copy of an appraisal--and I do this at least twice per year.




Federal law requires federally-supervised/regulated lenders (whose loans are packaged for FNMA or GNMA) to be certain that properties mortgaged by them are properly NFIP insured.



However, if you are actually doing the right thing by purchasing your own NFIP policy with proper coverage amounts in addition to your homeowner's insurance, and this is still occurring, you should be complaining to your state's Dept of Insurance about UNFAIR ACTS OR PRACTICES. It's not something lawyers would probably be much interested in pursuing, but the DOI certainly will.



Contact your state's Dept of Insurance and file a complaint ASAP!! If it's determined to be an unlawful "general business practice", the state will fine them heavily, and perhaps order some restitution (or leave them exposed to civil suits for their misdeeds).


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PostPosted: Sun Nov 21, 2010 7:09 am   Post subject: Chase is a rip off  

Chase send a letter saying i needed flood insurance and that i had 45days to get it are they would get it for me. The price would be three time the amount if they bought it. So, I bought it myself. I had to get it by 08/04/2010 and I did. 124,000.00 of flood insurance on a 70,000.00 house that I only owe 18,000.00 on. At a 830.00 a year i never had to have flood insurance and i have been living here for 19years. Here is the kicker on 11/15/2010 I got another letter saying that I need to increase my flood insurance because I didn't have adequate coverage. Now they want me to get another 121,000.00 of coverage. Are they crazy. I think they are trying to scam me. I think chase is hoping I didn't notice to letter. And, bam right at Christmas time just and it to my 34 months left loan.


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PostPosted: Mon Nov 22, 2010 1:05 am   Post subject:   

Quote:
Are they crazy. I think they are trying to scam me. I think chase is hoping I didn't notice to letter. And, bam right at Christmas time just and it to my 34 months left loan.




The timing may be poor, but you can't blame Chase specifically for this. If your loan was with Bank of America, Citibank, Wells Fargo, or virtually any other federally-regulated lending institution, the exact same thing would be true. And it's actually been a requirement since 1973.



But today's vigorously stepped-up enforcement by the banks? Chalk this one up, SPECIFICALLY, to the Bush/Obama bailouts of the financial sector and TARP. All federally-insured banks and most other lending institutions are required to do this with their loan portfolios, and they can be severely punished for noncompliance. That's also been true since 1973 when the first mandatory coverage requirements were passed.



Quote:
Federally regulated lending institutions often were relaxed in complying with the mandatory purchase provision without the sanction of a penalty.
2007 NFIP Mandatory Purchase of Flood Insurance Guidelines. http://www.fema.gov/good_guidance/download/10040



Except the government was also "relaxed" in its pursuit of noncompliance. Things have changed in the aftermath of the most recent round of financial services companies' bailouts.



Also from the official NFIP website, http://floodsmart.gov



Quote:
What to Expect



Congress mandated federally regulated or insured lenders to require flood insurance on properties that are located in areas at high risk of flooding.



Below you'll find the insurance requirements for your flood risk area. If you're not sure which area your property is in, take your Risk Profile to learn more.

Residents of High-Risk Areas



Homes and buildings in high-risk flood areas with mortgages from federally regulated or insured lenders are required to have flood insurance. These areas have a 1% or greater chance of flooding in any given year, which is equivalent to a 26% chance of flooding during a 30-year mortgage.



Residents of Moderate-to-Low Risk Areas



Homes and businesses located in moderate-to-low risk areas that have mortgages from federally regulated or insured lenders are typically not required to have flood insurance. However, flood insurance is highly recommended because 25% of all flood claims occur in moderate-to-low risk flood areas.



A lender can require flood insurance, even if it is not federally required.




So pray for a dry 34 months. But you'll also be glad you have the coverage if a flood happens any time in the next 34 months, too. It's a double-edged sword that you cannot escape as long as you have a loan from almost any source and your property is in a flood zone.



35 months from now, if you want to drop the coverage, you'll be more than welcome to do so. But you might not want to.



Quote:
11/15/2010 I got another letter saying that I need to increase my flood insurance because I didn't have adequate coverage. Now they want me to get another 121,000.00 of coverage.




The maximum property coverage limit for 2011 is $250,000, so you're not being asked to insure for more than that. http://www.fema.gov/pdf/nfip/manual201010/05rate.pdf



If your dwelling's actual REPLACEMENT COST is legitimately appraised at $70,000, I don't know why you are being required to carry more coverage than its Replacement Cost -- but the lender can require just about anything it wants. Or are you just guessing at the REPLACEMENT COST of the structure? Have you actually talked to anyone at Chase, or are you only complaining about this to us and with your friends?


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PostPosted: Mon Mar 07, 2011 8:13 pm   Post subject: flood  

Bought my house 3 months ago,loan sold three times. First two lenders were ok with coverage,180.800 at 103.00 a month.Now my loan is with Wellsfargo Bank N A.

They have forced me to obtain the the max of 250,00 at 365 a month.Got a letter from FEMA,stating no claims have been filed,and bare in mind the house is 34 years old.So how is that legal or ethical for them to charge me that and how can I get it reduced?


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PostPosted: Tue Mar 08, 2011 6:03 am   Post subject:   

How much is your loan amount and what is your dwelling replacement cost? If coverage for $180,800 was $103/mo, I find it difficult to believe that coverage for $250,000 (not even 40% more coverage) would be more than triple. That simply makes no sense. Find a local property/casualty insurance agent/agency to assist you with this.



You are not required to purchase a NFIP policy through your lender. You may obtain coverage through any licensed broker or agent in your state. If Wells Fargo has added coverage to your loan, you can have it removed by providing your own purchased coverage. Premiums are based in part on the flood zone rating where your structure is located, and the replacement value of your dwelling.



You could also talk to someone at Wells Fargo concerning their requirement for $250,000. If they have already added the insurance, it most likely is the result of your failure to provide them with evidence of satisfactory coverage. While you are required to insure the property if the loan is FHA/FNMA/GNMA guaranteed, you are not required to insure beyond the replacement cost of your structure.



You can always file a complaint with your state's Dept of Insurance if you believe you are being "victimized" by Wells Fargo.



FYI -- Wells Fargo takes the position that, as a National Bank, it is only regulated by the Comptroller of the Currency, and that states cannot force it to be licensed, not limit its activities, as a lender under state law. Courts have upheld this preemption when it comes to being regulated as a lender, but I am not aware of any instance in which they have been held out as being exempt from regulation under state insurance laws. They may be engaging in an unfair business practice that is prohibited under your state's Insurance Code.



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PostPosted: Thu May 12, 2011 11:57 pm   Post subject: Forced flood insurance Legal Scam?  

I just got notified I have 45 days to buy flood insurances or Chase Bank will buy it for an even higher price than the $1,600 per year price that I've seen. Doesn't mater what the house is worth, it must be insured for the full price of the mortgage. There hasn't been any change in Fema maps since I bought my house and had my Flood Cert. We need Class Action!! I've been to my City offices they show Im Not in a flood zone. But Chase says I am! I am completely Blind sided by this. I have no choice but to make time to beat the clock on this Issue. As I know I'm not in flood zone. If I can't get a Loma this will cost me around 50k over the time of my loan! For a home that has never flooded and is not close to high risk. The flood insurance Price is now my biggest threat to losing are home.


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PostPosted: Fri May 13, 2011 9:12 am   Post subject:   

Contact your state's banking regulator, the state's Dept of Insurance, and the US Comptroller of the Currency to file complaints against Chase.



You can also contact FEMA for a determination of your property's flood-prone status and provide that to Chase to get them off your back.



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PostPosted: Mon Feb 11, 2013 6:01 pm   Post subject: take arms  

Now you see why the goverment is in such a rush to take arms.

I see something in the coming decades that may encompase insurgency here at home


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PostPosted: Mon Feb 11, 2013 11:46 pm   Post subject:   

If your home is not in a FEMA-designated flood area, Chase has no reason to add the NFIP coverage. They are permitted to do so only if the loan is federally-insured (GNMA, FNMA, Freddie Mac, FHA, or FmHA), and there has to be a provision in your loan documents that would allow them to do so.



There was a class action in 2011 against Chase over home-equity lines of credit that were executed prior to sometime in early-2010. There were actually four different classes of persons certified by the Federal District Court for Nothern California ( http://www.site.chasefloodinsurancelitigation.com/uploads/ChaseCANotic e.pdf ). But I don't think your situation involves a HELOC.



Another class action filed against Chase in 2012 is pending in New York State ( http://www.bergermontague.com/media/341817/5-23-12-filed-scheetz-v-cha se---flood-complaint-%282%29.pdf ) that may be closer in form to your situation. It concerns a FNMA mortgage.



If you are interested in acting as a plaintiff in a federal class action lawsuit, I may have some attorneys willing to look at your case, because this is beginning to happen all over the place. Eventually, all the cases could be consolidated into one action in one court if the issues are substantially the same. Being a lead or co-lead plaintiff gets you the most in the event of any judgment or settlement. Of course, the attorneys really get the lion's share. All the other class members usually get some kind of token amount that really doesn't compensate them for their damages. But you never know.



Please contact me by clicking on the "Send me your questions" link below.



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