HSBC Can't Kill Kickbacks Suit Over Force-Placed Insurance

Law360, New York (July 19, 2012, 3:51 PM EDT) -- A Pennsylvania federal judge on Tuesday allowed homeowners in a putative class action to move forward with claims that lender HSBC Mortgage Corp. received kickbacks for imposing expensive force-placed insurance on customers, while dismissing all claims against affiliate HSBC Mortgage Services Inc.

A Philadelphia couple who took out a home loan from HSBC contends the bank ultimately received kickbacks from imposing the additional insurance on their property. The company had sought dismissal of all claims against both entities, arguing its mortgage contract gave it the right...
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