Auto insurance quotes

Don
Don
9 Min Read
auto-insurance-quotes
Auto insurance quotes

Introduction

Insurance giant Farmers Group has agreed to pay $90 million to settle California claims that it failed to pay off car loans it insured, in some cases requiring customers to make extra payments. The settlement involves debts incurred between 2002 and 2006, when the company was working with lenders who were charging excessive interest rates, Farmers said. If a consumer defaulted on a loan or the vehicle was lost or stolen and the value of the loan exceeded the value of the vehicle, Farmers had a responsibility to pay off the balance of the loan under California law. Instead of paying off loans, however, “Farmers often charged consumers for costs associated with repossessing and selling their vehicles,” California Insurance Commissioner Dave Jones said in a written statement. “In other cases, Farmers forced consumers to continue making monthly payments on their auto loans after their vehicles were stolen or totaled.”

Insurance giant Farmers Group has agreed to pay $90 million to settle California claims that it failed to pay off car loans it insured, in some cases requiring customers to make extra payments.

The settlement is for customers who had loans with Farmers between 2002 and 2006. The agreement is not final yet, but it is expected to be finalized soon.

Farmers will have to pay $90 million to settle claims by borrowers who were forced into higher monthly payments because their loans exceeded the amount of insurance coverage they had purchased on their vehicle.

The settlement involves debts incurred between 2002 and 2006, when the company was working with lenders who were charging excessive interest rates, Farmers said.

In the settlement, Farmers has agreed to pay $15 million in customer refunds, which will be distributed over the next four years. The company also agreed to pay an additional $5 million in interest and fees on the loans that it did not honor.

The agreement comes after Farmers paid $2 billion in 2012 for its role in creating “abusive” mortgages during the financial crisis. That lawsuit involved 582 homeowner suits filed by people who lost their homes due to mortgage fraud or improper foreclosure practices at subprime lenders on behalf of Wells Fargo & Co., Bank of America Corp.’s Merrill Lynch Home Loans unit and other banks that were involved with issuing bad loans during those years, according to court documents filed earlier this year (see: “This Is What Happens When You Refinance Your Mortgage”).

If a consumer defaulted on a loan or the vehicle was lost or stolen and the value of the loan exceeded the value of the vehicle, Farmers had a responsibility to pay off the balance of the loan under California law.

Farmers is a large insurance company that has agreed to pay $90 million to settle California claims that it failed to pay off car loans it insured, in some cases requiring customers to make extra payments.

The settlement announced Wednesday by the Attorney General’s Office covers about 3 million California residents who had their vehicles taken from them or damaged during an accident and didn’t receive payment from Farmers. The settlement does not cover people who were part of one of two groups covered under another state law — those with damage caused by fire or lightning strikes as well as those whose homes were damaged due to windstorms that last longer than 30 days — because those counts are considered separate lawsuits filed by attorneys general across the country against insurers including State Farm Mutual Automobile Insurance Co., Allstate Corp., Nationwide Mutual Insurance Co., Liberty Mutual Holding Co., Gray Wolf LLC (formerly American Family Insurance), Auto-Owners Casualty Company (now part of Travelers Companies Inc.), Travelers Indemnity Company (now owned by RSA International), MetLife Inc.’s TALA Group subsidiary which provides auto coverage under various names including Farmers’ Farm Bureau Life Insurance Company among others; these types of suits collectively cost insurers between $1 billion-$2 billion annually according Ina Drew’s book “Auto Accident Litigation”.

Instead of paying off loans, however, “Farmers often charged consumers for costs associated with repossessing and selling their vehicles,” California Insurance Commissioner Dave Jones said in a written statement. “In other cases, Farmers forced consumers to continue making monthly payments on their auto loans after their vehicles were stolen or totaled.”

Instead of paying off loans, however, “Farmers often charged consumers for costs associated with repossessing and selling their vehicles,” California Insurance Commissioner Dave Jones said in a written statement. “In other cases, Farmers forced consumers to continue making monthly payments on their auto loans after their vehicles were stolen or totaled.”

The state insurance commissioner said that he was concerned about reports that some Farmers refused to pay off the balances on loan accounts even when they had been fully paid off by the consumer.

The Los Angeles Times reported that, as part of the settlement, Farmers must provide refunds to affected customers plus interest. Some customers also will get $15,000 checks. Others still owe money on their loans and will have to make additional payments over time. The state will oversee those arrangements.

The Los Angeles Times reported that, as part of the settlement, Farmers must provide refunds to affected customers plus interest. Some customers also will get $15,000 checks. Others still owe money on their loans and will have to make additional payments over time. The state will oversee those arrangements.

The state has already paid out $77 million in refunds and other settlements related to this case since 2012 when it first started investigating auto insurers for selling insurance products without proper disclosure or underwriting guidelines without disclosing that they were doing so in violation of California law (the Financial Institutions Code).

“The settlement is fair resolution for our customers and stakeholders,” said Mark Toohey, a spokesman for Zurich Insurance Group, which bought Farmers in 2009.

“The settlement is fair resolution for our customers and stakeholders,” said Mark Toohey, a spokesman for Zurich Insurance Group, which bought Farmers in 2009. “We are committed to providing them with mutual trust and confidence in the long term.”

Farmers was founded in 1917 as an insurance company based in California but grew into one of America’s largest farm-based insurers. It has a history of providing insurance to customers since 1917, including coverage for crops and livestock as well as home owners’ policies. The company operates through nine regional offices across the country (including New York City), but it also offers its services through franchises located elsewhere—like this branch located just north of Times Square on 42nd Street between 6th Avenue and Broadway..

Conclusion

Farmers Group has agreed to pay $90 million to settle California claims that it failed to pay off car loans it insured, in some cases requiring customers to make extra payments. The settlement involves debts incurred between 2002 and 2006, when the company was working with lenders who were charging excessive interest rates, Farmers said. If a consumer defaulted on a loan or the vehicle was lost or stolen and the value of the loan exceeded the value of the vehicle, Farmers had a responsibility to pay off the balance of

TAGGED:
Share this Article
Leave a comment