Class Eligibility

All borrowers in the United States who, from January 1, 2009 to August 9, 2017 (“Settlement Class Period”), inclusive of those dates, were charged by Fay for a hazard, flood, flood-gap, or wind-only LPI Policy for Residential Property issued and/or procured by the Insurer Defendants during the Settlement Class Period and who either (i) paid to Fay all or part of the Net Premium for that LPI Policy, or (ii) were charged but did not pay and still owe to Fay the Net Premium for that LPI Policy.

Estimated Amount

Varies

Fay Settlement Class Members are eligible for a cash award of 10.5% of the Net Premium charged to the claimant if during the Class Period they made at least one full monthly mortgage payment to Fay after either: (a) their existing escrow account was charged the premium for the LPI Policy; or (b) an escrow account was created to charge the premium for the LPI Policy.

All other Fay Settlement Class Members who were charged by Fay for an LPI Policy during the Class Period, and who have not paid and still owe the Net Premium for that policy, are eligible for a cash award of 8% of the Net Premium charged by Fay during the Class Period for the LPI Policy. The Net Premium is the amount of the LPI premium charged less any refunds already provided to the borrower.

Proof of Purchase

Yes

Case Name

Strickland, et al., v. Carrington Mortgage Services, LLC, et al.
Case No. 1:16-cv-25237-JG
United States District Court for the Southern District of Florida

Case Summary

Plaintiffs allege that when a borrower was required to have insurance for his or her property pursuant to a residential mortgage or home equity loan or line of credit, and evidence of acceptable coverage was not provided (for example, when the insurance policy did not exist or had lapsed), Fay would place insurance in a manner such that Fay allegedly received an unauthorized benefit. Plaintiffs allege further that Fay did so primarily to receive other consideration from the Insurer Defendants. Plaintiffs also allege that the way in which LPI policies were obtained and placed caused the premiums and the amount of coverage to be excessive.

Settlement Pool

N/A

Deadline

03/28/18

Contact


Kozyak Tropin & Throckmorton, LLP
2525 Ponce de Leon Blvd., 9th Floor
Coral Gables, Florida 33134
Telephone: (305) 372-1800
Facsimile: (305) 372-3508

One response to “Fay Servicing Force-Placed Insurance Class Action Settlement”

  1. Monica Haile says:

    I am current customer of Fay Servicing. I believe I may be eligible for this claim. However I did not receive notification regarding the Class Action. How do I obtain a if number to file a claim?

    ADMIN – Hi Monica,

    Did your insurance policy go into default and Fay placed a policy on your mortgage. If yes contact the class action administrator. If no, you are not a class member

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