Wednesday, April 25, 2012

Nichols Kaster, PLLP Files Nationwide Class Action Against Bank of America for Allegedly Misrepresenting that Flood Insurance Was Required for Borrowers' Housing Cooperative Units

Charlotte, NC, Apr 24, 2012 (GlobeNewswire via COMTEX) -- On April 20, 2012, Plaintiffs Pamela and Mark Lemmer filed a class action lawsuit against Bank of America, N.A. in United States District Court in the Western District of North Carolina.

According to the Complaint, Bank of America falsely represented to the Lemmers that flood insurance was required for their cooperative unit by their mortgage and/or federal law, even though their mortgage agreement does not contain a flood insurance requirement and federal law does not require flood insurance for cooperative units. The lawsuit alleges that Bank of America then force-placed flood insurance coverage on the Lemmers' cooperative unit even though no flood insurance was required in the first place, and accepted a commission for purchasing this unnecessary insurance at the Lemmers' expense. "Not only did Bank of America illegally buy the insurance, it took a commission for doing so," said Plaintiffs' attorney Kai Richter.

In their class action Complaint, the Lemmers seek relief on behalf of themselves and other housing cooperative borrowers across the country who have been similarly affected by Bank of America's alleged conduct. Based on this alleged conduct, Plaintiffs' Complaint asserts claims against Bank of America for breach of contract/breach of the covenant of good faith and fair dealing and fraud.

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