LAWSUITS NEWS & LEGAL INFORMATION
$4M HSBC Settlement Reached in Massachusetts Forced-Place Insurance Lawsuit
This is a settlement for the Force-Placed Insurance and Bank lawsuit.
Santa Clara, CA: A settlement has been reached between HSBC and the office of the Massachusetts Attorney General Maura Healey for $4 million, ending allegations that HSBC took illegal commissions and kickbacks for forced-place insurance policies.
Reportedly, thousands of borrowers were allegedly improperly charged force-placed insurance premiums, however, the affiliate did not perform the traditional functions of an insurance company. HSBC allegedly received compensation tied to force-placed insurance premiums until 2012, which the AG' office believes was a conflict of interest.
The settlement will provide$2.67 million in restitution to affected Massachusetts homeowners, and $1.4 million to the state of Massachusetts.
Published on Feb-29-16
Reportedly, thousands of borrowers were allegedly improperly charged force-placed insurance premiums, however, the affiliate did not perform the traditional functions of an insurance company. HSBC allegedly received compensation tied to force-placed insurance premiums until 2012, which the AG' office believes was a conflict of interest.
The settlement will provide$2.67 million in restitution to affected Massachusetts homeowners, and $1.4 million to the state of Massachusetts.
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