| A class action suit in Florida that moved forward this week highlights a little-appreciated aspect of the housing market--the cozy relationship between banks and insurance companies that often results in overpriced home insurance for already struggling borrowers. As the American Banker reported, a federal judge in Miami on Tuesday opened the door to a class action against Wells Fargo. More than 20,000 Florida homeowners can now sue Wells Fargo and an insurance company, QBE, for allegedly overcharging for insurance. More than $50 million in insurance premiums are at issue, according to American Banker. The suit itself, filed last year, is sealed, but the judge, Robert Scola, laid out the allegations against Wells Fargo. The judge didn't rule on the case itself, but rather allowed it to go forward as a class action. |
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