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Ziwczyn v. Regions Bank Settlement
www.ZiwczynSettlementInfo.com

Overview

Final Approval has been granted in a Settlement of a class action against Regions Bank (“Regions”), American Security Insurance Company, Standard Indemnity Insurance Company, and Voyager Indemnity Insurance Company (collectively, “Defendants”).

Plaintiffs alleged, among other things, that when a borrower was required to have insurance for his or her property pursuant to a residential mortgage, 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), Regions would place insurance in a manner such that Regions allegedly received an unauthorized benefit. Plaintiffs allege further that Regions did so primarily to receive “kickbacks” in the form of commissions from the Assurant Defendants. Plaintiffs also allege that the way in which LPI policies were obtained and placed caused the rates and the amount of coverage to be excessive.

All Defendants expressly deny Plaintiffs’ allegations and assert their actions are fully authorized under the mortgage instruments and by law. They also expressly deny that they did anything wrong. There has been no court decision on the merits of this case and no finding that Defendants committed any wrongdoing.

Who Is Included in the Settlement Class?

The Settlement Class includes all borrowers in the United States who, between January 1, 2009 and June 22, 2016 (the “Class Period”), were charged by Regions under a hazard or wind-only LPI Policy for Residential Property, and who, within the Class Period, either (i) paid to Regions the Net Premium for that LPI Policy or (ii), did not pay and still owe Regions the Net Premium for that LPI Policy.

What Are the Terms of the Settlement?

Per the terms of the Settlement, eligible Class Members, who did not properly exclude themselves (“opt out”) of the Settlement, will receive a cash award or credit in the amount of 12.5% of the Net Premium charged during the period January 1, 2009 through October 31, 2013 and 7% of the Net Premium if the LPI charge occurred on or after November 1, 2013, provided each Settlement Class Member submits a valid and properly completed Claim Form by February 27, 2017, including for some claimants, providing a form of verification of their identity. Please see the Class Notice for additional detail.

What Are Your Other Options?

The deadlines to opt-out of the Settlement, object to the Settlement, or submit a request to speak at the Final Approval Hearing have passed.

Final Approval Hearing

The United States District Court for the Southern District of Florida held a Final Approval Hearing on November 22, 2016. Final Approval was granted on November 29, 2016.