11th Circ. Told To Nix BofA $228M Force-Placed Insurance Deal

By Emily Field

Two members of a settled class action accusing Bank of America NA of accusing the bank of overcharging homeowners for forceplaced insurance told the Eleventh Circuit on Tuesday that the $228 million deal shouldn’t have been approved because the settlement amount is illusory.

Appellants Michael and Jill Trapasso told the Eleventh Circuit that a Florida federal judge shouldn’t have signed off on the settlement last year and the class counsel’s $16 million fees because there’s no common fund and no minimum payout. The Trapassos say that the $228 million valuation is “fiction,” only a small percentage of class members had filed claims before the deal was approved and there’s no evidence how many of those are valid claims.

Click here to read the full article.