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

10 responses 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

  2. beverly lavigne says:

    I recently received copies of 4 checks that supported the force placed insurance, and i am not certain what too do ? They also , had conversation with 3rd party and sold them my house or accepted their payment. Anyways, I also got list of names of people who were involved in this insurance fraud. They only sent too me because CFPB told them too.
    RSVP

    ADMIN – Hi Beverly,

    I am not clear as to what you are trying to ask.

  3. beverly lavigne says:

    I had received copies of partial pay-off too Faye , uncertain but perhaps a payback for premiums they paid out. If I can get my Canon scanner too work I can send it too you ! Very difficult too explain. But Faye had on several occasions placed forced placed insurance ! They did also claim ” default ” , I will notify the lawyers.

    ADMIN – Hi Beverly,

    You go for it girl!

  4. Greg Evans says:

    The crooks at Fay starting charging me for single family homeowner policy on my Condo. I have insurance on the contents but my State Farm agent of 20 years told me that she could write a policy that would “satisfy” the thieves at Fay but it would duplicate coverage on the Master Condo policy. I provided the scammers with the Master policy and my content policy. Needless to say Fay didn’t stop charging me the Force Placed premiums and I refused pay the increase so grabbed my escrow and started charging me late fees and trashing my credit score. I couldn’t afford a huge retainer for an attorney. . So I filed a complaints with Illinois Attorney General. I stayed on top of the complaints with periodic follow-up letters. One day to my surprise Fay sent me combination of a refund and credit of about $4200. The Illinois Attorney General declined to prosecute because they refunded my overcharges. I like think I helped get the class action started. Does anyone know when we could expect the tiny payment? Oh BTW I have Richard Fay’s home address!

    ADMIN – Hi Greg,

    I don’t have a timeline on this settlement yet. As soon as I do I will make an update on Facebook

  5. J Monique says:

    Fay Servicing definitely has accuracy issues. So yes Greg Evans I see your point. They have been trying to fraudulently price me out of my home for the past two years. I have kept a paper trail. A real estate attorney (he doesn’t handle matters such as this) said the evidence I have has been deemed illegal and predatory. Can someone please let me know how I may be able to start a lawsuit myself. It looks like they put 42,000 on to my loan and FAY will not explain to me how or why? I have a fix rate loan. They have sent me several letters demanding anywhere from $10,000 to about $25,000 and treating foreclosure. Fay Servicing told me that they had no record of about 2 years of payments. I had read that they had swindled money out of homeowners. So I knew to pay my mortgage with 3rd party bank, my credit union for tracking purposing. I WOULD NEVER PAY THEM DIRECTLY!!! I need a law firm with experience with making huge corporations that prey on consumers stop and be accountable.

    ADMIN – Hi Monique,

    To start a lawsuit you look for a lawyer that specializes in the area of need.

    • Maria Sanchez says:

      Hello JM…I don’t know what state you reside, but I,too, have issues with FayS…they are have unfair practices and are crooks. Newport Law Group(800-805-5817 Liz Gomez) in Southern California helped my father’s house and mine. We fell behind in our payments and when we wanted to pay- they were ignoring our calls. It took Newport Law to intervene. Do call them, they do not like Fay Servicing. Good Luck and Take Care, Maria.

  6. Shannell L says:

    when should we expect to receive a reimbursement check?

    ADMIN – Hi Shannel,

    Currently in pending status due to potential appeals

    The Court will hold a hearing on January 22, 2018 to determine whether to approve the Settlement. If the Court approves the Settlement, there may be appeals after that. It is always uncertain when any appeals, if filed, will be resolved. Cash payments will be mailed after the Settlement becomes final and effective, which means after all appeals have been resolved. Please be patient.

  7. JOTERRY says:

    JUNE 18 2018 I got a check for $150.00 DATED JUNE 11 2018. I DEPOSITED IT JUNE 19 JUNE 20 IT BOUNCED!

    ADMIN – Hi Jo,

    Reach out to the class action administrator. When this happens they usually pay for your fees plus the settlement.

  8. Livia Gomes says:

    TCF sold my mortgage to Fay servicing. I received a call shortly after that from Fay servicing, stating that I needed to pay back payments of insurance because TCF Bank did not charging me enough for insurance furing the time they had my mortgage. Fay servicing charged me thousands of dollar on top of the mortgage and the inusance they had put on the house.

    ADMIN – Hi Livia,

    If the deadline has not passed by all means file your claim.

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