HSBC Says Force-Placed Insurance Suit Fails To Allege Injury

Law360, New York (July 12, 2012, 1:19 PM EDT) -- HSBC Mortgage Corp. on Wednesday urged a New York federal judge to throw out a putative class action claiming the lender imposed expensive force-placed insurance on homeowners, saying the lead plaintiff never paid the premiums and lacked standing to sue.

HSBC lodged a motion to dismiss the March 7 suit by Georgia resident Christopher Maxwell, who claims HSBC procured “exorbitantly priced” policies from co-defendants Assurant Inc. and California-based subsidiary Tracksure Insurance Agency Inc. The costs were passed along to Maxwell and were four times the price...
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