Welcome!

News Feed Item

Berger & Montague, P.C. And Nichols Kaster, PLLP Announce Final Approval Of Nationwide Class Action Settlement With Citibank Making Millions Of Dollars In Force-Placed Insurance Refunds Available To Mortgage Borrowers

PHILADELPHIA, Aug. 25, 2014 /PRNewswire/ -- Judge David Hurd of the United States District Court for the Northern District of New York has granted final approval of a nationwide class action settlement in a pair of consolidated federal cases, Casey v. Citigroup, Inc., No. 12-cv-820 (N.D.N.Y.) and Coonan v. Citibank, N.A., No. 13-cv-353 (N.D.N.Y.), involving force-placed insurance. The law firms appointed to represent the plaintiffs and the classes, Berger & Montague, P.C. and Nichols Kaster, PLLP, are pleased that the court approved all aspects of the settlement, which makes force-placed insurance refunds available to over 400,000 borrowers. Specifically, Citibank and the other defendants have made more than $115 million in refunds and escrow credits available to borrowers whose mortgage loans were serviced by Citibank, and who submit a claim form to receive a refund of the force-placed insurance premiums that were charged to them.

The lawsuits alleged that Citibank and its force-placed insurance vendors, Assurant, Inc., American Security Insurance Company, and Standard Guaranty Insurance Company, unlawfully profited from force-placing insurance on borrowers' properties, including by arranging for improper kickbacks or so-called "commissions" to be paid to Citibank or its affiliates by the force-placed insurance vendors. The Casey lawsuit also alleged that Citibank increased the amount of force-placed flood insurance required for some borrowers in excess of their unpaid principal balance, in violation of borrowers' loan agreements.

To receive compensation under the settlement, mortgage borrowers whose loans have been serviced by Citibank and who were subjected to force-placed insurance must submit a claim form by the end of the claim period, which remains open. Class members who submit timely and valid claims will receive a check or escrow credit equal to (a) 12.5% of any hazard insurance premiums they were charged between January 1, 2007 and April 2, 2014; (b) 8% of any wind insurance premiums they were charged between January 1, 2007 and April 2, 2014; and (c) 8% of any flood insurance premiums they were charged between May 17, 2006 and April 2, 2014. Claim forms are available on the settlement website, www.CMIMortgageInsuranceSettlement.com, and should be sent to CitiMortgage Claims Administrator, PO Box 43262, Providence RI 02940-3262. In addition, the settlement provides for significant injunctive relief by prohibiting the allegedly improper kickbacks from continuing and by limiting the amount of insurance that Citibank can require borrowers to maintain.

"This settlement is a victory for the class members," said Kai Richter of Nichols Kaster, PLLP, one of the lead attorneys for the Plaintiffs. "Under the settlement, class members who submit claims will be entitled to recover almost all of the commissions that were paid to Citibank's affiliate on force-placed hazard insurance, and will be entitled to recover a portion of the premiums they paid for flood and wind insurance even though Citibank and its affiliates did not receive commission payments in connection with flood and wind insurance."

"This was a hard-fought settlement that vindicates the rights of affected consumers," said Shanon J. Carson of Berger & Montague, P.C., also appointed as co-lead counsel for the Plaintiffs. "It is important that class members understand that the time period in which they can submit a claim to receive a refund of their force-placed insurance premiums remains open, and that they only have to go on the website www.CMIMortgageInsuranceSettlement.com and fill out and return a one-page claim form to receive their payment."

Berger & Montague, P.C., based in Philadelphia, PA, represents plaintiffs in complex and class action litigation and is consistently ranked as one of the top plaintiffs' law firms in the United States by many publications. Berger & Montague, P.C. has extensive experience representing homeowners, consumers and borrowers in class action litigation against banks and insurers, and the firm has played lead roles in major cases for over 40 years resulting in recoveries of many billions of dollars for their clients and the classes they represent.  Further information about Berger & Montague, P.C. can be found at www.bergermontague.com.

With offices in Minneapolis and San Francisco, Nichols Kaster is a premier consumer and employment litigation firm. Nichols Kaster has been ranked as a Best Law Firm by U.S. News & World Report, as a top plaintiffs' employment law firm by Law360, and by Minnesota Lawyer as one of Minnesota's Top 100 Law Firms. The firm is composed of 32 experienced and talented attorneys dedicated to "fighting for the little guy." Further information about Nichols Kaster's practice is available at www.nka.com.

 

Please contact:


Shanon J. Carson

Kai Richter

Berger & Montague, P.C.

Nichols Kaster, PLLP

1622 Locust Street

4600 IDS Center

Philadelphia, PA 19103

80 South Eighth Street

Telephone: (215) 875-4656

Minneapolis, MN 55402

Email: [email protected] 

Telephone: (612) 256-3278


Email: [email protected]

SOURCE Berger & Montague, P.C.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
Big Data has been changing the world. IoT fuels the further transformation recently. How are Big Data and IoT related? In his session at @BigDataExpo, Tony Shan, a renowned visionary and thought leader, will explore the interplay of Big Data and IoT. He will anatomize Big Data and IoT separately in terms of what, which, why, where, when, who, how and how much. He will then analyze the relationship between IoT and Big Data, specifically the drilldown of how the 4Vs of Big Data (Volume, Variety,...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of companies worldwide-from publishers and broadcasters, to enterprises, marketing agencies and household-name brands. Building on its established design leadership, Adobe enables customers not o...
Creating replica copies to tolerate a certain number of failures is easy, but very expensive at cloud-scale. Conventional RAID has lower overhead, but it is limited in the number of failures it can tolerate. And the management is like herding cats (overseeing capacity, rebuilds, migrations, and degraded performance). Download Slide Deck: ▸ Here In his general session at 18th Cloud Expo, Scott Cleland, Senior Director of Product Marketing for the HGST Cloud Infrastructure Business Unit, discusse...
SYS-CON Events announced today that Interface Masters Technologies, a leader in Network Visibility and Uptime Solutions, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Interface Masters Technologies is a leading vendor in the network monitoring and high speed networking markets. Based in the heart of Silicon Valley, Interface Masters' expertise lies in Gigabit, 10 Gigabit and 40 Gigabit Eth...
What does it look like when you have access to cloud infrastructure and platform under the same roof? Let’s talk about the different layers of Technology as a Service: who cares, what runs where, and how does it all fit together. In his session at 18th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, an IBM company, spoke about the picture being painted by IBM Cloud and how the tools being crafted can help fill the gaps in your IT infrastructure.
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, showed how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningful f...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.