Firm-Wide blog

Court Denies Motion to Dismiss Class Action Complaint Against Citimortgage and Citibank Over Flood Insurance

By Burg Simpson
December 19, 2013
2 min read

As previously reported, 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. Citibank and Citimortgage filed a motion to dismiss the complaint. On December 18, 2013, the Court entered an Order denying Defendants’ motion to dismiss.  Read the order denying the Motion to Dismiss here.

The Court’s order allows Plaintiff to move forward on the claims that by forcing Plaintiff to purchase supplemental flood insurance in an amount that exceed the mortgage on the home, Citibank and Citmortgage breached the contract, breached the implied covenant of good faith and fair dealing, violated the Truth in Lending Act, and was unjustly enriched.

Plaintiff’s 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.


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