(PALM BEACH POST) — In what plaintiff attorneys are calling a precedent-setting case, JP Morgan Chase Bank has reached a $300 million settlement with homeowners who said the bank unfairly cashed in on deals with insurers to provide expensive policies.
Plaintiff attorneys said it is the first national settlement of five cases pending in Miami before a federal judge, including Wells Fargo, HSBC, Citibank and Bank of America. Wells Fargo earlier reached a $20 million settlement with Florida homeowners that awaits a final fairness hearing Wednesday.
A Chase spokeswoman said the bank has discontinued a reinsurance agreement that was part of its arrangement with insurers providing policies for homeowners who fell behind on payments or otherwise let coverage lapse. Such policies are known as “force placed” or “lender-placed” insurance.