Collateral Protection Insurance Investigation

Squitieri & Fearon, LLP is investigating allegations that certain banks may be charging their borrowers for unnecessary and unauthorized car and automobile insurance called “Collateral Protection Insurance” (CPI).  Lenders are force-placing collateral protection insurance without proper notice to the consumer, and even purchasing coverage for borrowers who provided evidence of applicable insurance coverage.  Often the insurance premiums are much more expensive than consumers could obtain on their own and the lenders are receiving kickbacks from the insurance carriers.  Often the lender receives a percentage of the premium, giving the lender a strong incentive to impose insurance with high premiums.

If you or somebody you know has received notice that your insurance lapsed and the finance company purchased replacement insurance coverage for you (“Forced-Placed Insurance” or “Collateral Protection Insurance”) we would like to hear from you, especially if you financed the purchase of a new or used motor vehicle through one of the following lenders: