Burg Simpson Files Class Action Against Citimortgage and Citibank Over Flood Insurance
On August 21, 2013, Burg Simpson filed a class action complaint against Citibank and Citimortgage regarding improper practices of forcing homeowners living in flood zones to purchase supplemental flood insurance. According to the National Flood Insurance Act, homeowners living in a flood zone must maintain flood insurance in an amount “at least equal to the outstanding principal balance of the loan or the maximum limit of coverage made available under the Act [$250,000], whichever is less.”
In 2013, Defendants Citibank and Citimortgage forced the Plaintiff to purchase flood insurance for more than the outstanding principal of her mortgage loan, in violation of the National Flood Insurance Act. The class action complaint seeks to represent “All persons in the United States who were required to purchase and maintain flood insurance for their property and who were charged for lender-placed flood insurance by Defendants during the applicable limitations period.”
If you live in a flood zone and were required by your mortgage company to purchase more flood insurance than the outstanding principal balance on your mortgage, you may be entitled to compensation. Please contact the Burg Simpson Ohio office at 1-800-713-9340.