ReliaStar Faces Class Action Over Loan Interest Policy

Law360, New York (August 15, 2011, 10:08 PM EDT) -- ReliaStar Life Insurance Co. was hit with a proposed class action in Florida on Friday claiming the company failed to inform policyholders that it would continue to charge interest on cash loans taken out of their accounts well after the loans were repaid in full.

The complaint, brought by Florida teacher Judith Slack, says the Minneapolis-based insurer's actions violated the Florida Deceptive and Unfair Trade Practices Act, as well as several other states' consumer protection and business practice laws.

If policyholders had known about ReliaStar's interest...
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