Wells Fargo Says Rate Rule Bars Force-Placed Insurance Suit

Law360, New York (April 12, 2013, 5:35 PM EDT) -- Wells Fargo Bank NA urged a Mississippi federal judge Thursday to find that the filed rate doctrine blocks a putative class action claiming the bank forced borrowers to pay exorbitant property insurance rates that went toward illegal kickbacks.  

The lawsuit arises from Wells Fargo's practice of forcing insurance policies on borrowers when homeowners don't take out adequate coverage voluntarily. In attempting to quash the suit, Wells Fargo and Wells Fargo Insurance Inc. heavily rely on the filed rate doctrine, which holds that rates that have been...
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