Wells Fargo Force-Placed RICO Action Gets Green Light

Law360, New York (January 30, 2014, 1:26 PM EST) -- A California federal judge found ample evidence Wednesday that Wells Fargo Bank NA and an Assurant Inc. unit deceived mortgagors about kickbacks the bank allegedly took off inflated lender-placed insurance premiums, and refused to release them from a racketeering class action.

U.S. District Judge Edward M. Chen rejected Wells Fargo’s claim that it explicitly warned borrowers that they would pay more for homeowners insurance if their policies lapsed and the bank stepped in to purchase stopgap coverage from American Specialty Insurance Co., its exclusive force-placed provider....
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