LAWSUITS NEWS & LEGAL INFORMATION
$3M Settlement Reached in Bank of America Bad Faith Insurance Class Action Lawsuit
This is a settlement for the Bad Faith Insurance lawsuit.
Santa Clara, CA: A $3 million settlement has received preliminary judicial approval, potentially ending a bad faith insurance class action lawsuit pending against Bank of America (BofA). The lawsuit, brought in April 2013, alleges that BoFA withheld monies due on insurance claims. The suit named BofA and its predecessor, BAC Home Loans Servicing LP, which was formerly known as Countrywide Home Loans Servicing LP.
Specifically, the plaintiffs assert their insurers wrote checks for about $20,000 to go toward repairs for significant hail damage, but BofA never produced the funds. The homeowners said the bank violated mortgage agreements requiring it to release proceeds from insurance claims to either allow repairs or reduce outstanding mortgage payments.
In the lawsuit, plaintiffs Cynthia and James Copher claim they provided BofA with all of the information requested and followed up with dozens of phone calls. However, four years on, they still have not received a check from State Farm Fire & Casualty Co. While Bank of America promised to release $10,000 to the Copher' contractor for initial work on the Cophers' house, promising to pay the rest of the funds at a later date, BofA did not produce those payments, despite repeated requests from the Cophers.
Similarly, plaintiffs James and Rosamma Richard claim that they have yet to receive a check from American Modern Home Insurance Co. for damage caused in 2011, by baseball-sized hail.
Under the terms of the settlement, BofA denies any wrongdoing. The bank has agreed to pay $1 million to class members and $2 million to cover the costs of notice and administration of the settlement class.
The suit was brought on behalf of all borrowers who hadn't received insurance claim proceeds from BofA or who didn't have insurance funds applied to reduce their outstanding loans or released to pay for repairs.
The suit also proposed a subclass of Oklahoma property owners whose property insurance money was not applied to the unpaid balance of their mortgages or released to conduct repairs.
A final settlement hearing is scheduled for June 2, 2016. The case is James D. Copher et al. v. Bank of America NA et al., case number 5:13-cv-00353, in the U.S. District Court for the Western District of Oklahoma.
Published on Feb-10-16
Specifically, the plaintiffs assert their insurers wrote checks for about $20,000 to go toward repairs for significant hail damage, but BofA never produced the funds. The homeowners said the bank violated mortgage agreements requiring it to release proceeds from insurance claims to either allow repairs or reduce outstanding mortgage payments.
In the lawsuit, plaintiffs Cynthia and James Copher claim they provided BofA with all of the information requested and followed up with dozens of phone calls. However, four years on, they still have not received a check from State Farm Fire & Casualty Co. While Bank of America promised to release $10,000 to the Copher' contractor for initial work on the Cophers' house, promising to pay the rest of the funds at a later date, BofA did not produce those payments, despite repeated requests from the Cophers.
Similarly, plaintiffs James and Rosamma Richard claim that they have yet to receive a check from American Modern Home Insurance Co. for damage caused in 2011, by baseball-sized hail.
Under the terms of the settlement, BofA denies any wrongdoing. The bank has agreed to pay $1 million to class members and $2 million to cover the costs of notice and administration of the settlement class.
The suit was brought on behalf of all borrowers who hadn't received insurance claim proceeds from BofA or who didn't have insurance funds applied to reduce their outstanding loans or released to pay for repairs.
The suit also proposed a subclass of Oklahoma property owners whose property insurance money was not applied to the unpaid balance of their mortgages or released to conduct repairs.
A final settlement hearing is scheduled for June 2, 2016. The case is James D. Copher et al. v. Bank of America NA et al., case number 5:13-cv-00353, in the U.S. District Court for the Western District of Oklahoma.
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READER COMMENTS
Toni Kirkland kirkendoll
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Dale Chester
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I later had damage to the roof do to a severe storm that came thru the area. I reported it to this insurance company and they done nothing.
I made waves by my calling and calling to thre office over the issue and next thing I knew they raised my locked in interest rate and then called in my home loan causing me to have to go bankrupt. And lose my home as they foreclosed on me...I was not behind any payments and all payments were up to date.
Jerry Brewer
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