Facts

Ira Fladell, Sarah Crouch, Greg Olson, Margaret Zawistowski, Tilena Ali, Danny Lane and Beverly Lane filed a class action against Wells Fargo Bank, N.A., Wells Fargo Insurance Inc., Assurant Inc., American Security Insurance Co., Voyager Indemnity Insurance Co., Standard Guaranty Insurance Co., QBE Specialty Insurance Co., QBE Insurance Corp., QBE First Insurance Agency Inc., QBE Financial Institution Risk Services Inc., and Praetorian Insurance Co.

PLAINTIFFS' CONTENTIONS:
Plaintiffs alleged that Wells Fargo had a practice of issuing an additional insurance policy on a homeowner's property to allegedly protect the property still under a mortgage contract. Plaintiffs were responsible for the force-placed insurance, which was not illegal per se, but plaintiffs alleged that it was illegal to charge them more than what it should cost to insure a property. Plaintiffs also argued that it was illegal to insure a property for personal gain, which plaintiffs alleged to be Wells Fargo's purpose in obtaining force-placed insurance on behalf of the homeowners. Plaintiffs asserted claims for breach of contract, breach of implied covenant of good faith and fair dealing, unjust enrichment, breach of fiduciary duty, and various other violations against lending and mortgage practices.

DEFENDANTS' CONTENTIONS:
Wells Fargo denied any wrongdoing.

Result

The parties reached a settlement, which varied. Class members who had a Lender Placed Insurance Policy charge occur on or before March 24, 2012, may be eligible to receive a cash credit reward of 11 percent of the net premium of the policy. Class members who had a Lender Placed Insurance Policy charge occur after that date will receive seven percent of the net premium.