Any product banks sell seem to be subject to thievery these days....
"Bank of America faces new suit" by David Beasley | Bloomberg News, June 27, 2012
NEW YORK — Bank of America Corp. was sued in a Florida federal court by homeowners who say the company overcharged them for so-called force-placed insurance.
Force-placed insurance, which mortgage companies can purchase for homeowners when their policies lapse, is a “financial windfall” for Bank of America, according to a complaint filed in West Palm Beach.
“A substantial portion of the premiums are refunded to Bank of America or its affiliates and subsidiaries through various kickbacks, reinsurance and/or unwarranted commissions,” according to the homeowners.
In April, New York’s Department of Financial Services, saying it was seeking a basis for “consistently high profits” at the expense of homeowners and investors, said it was investigating whether force-placed insurance rates are excessive.
A spokesman for Bank of America had no comment.
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