Wells Fargo Home mortgage Added outrageous insurance premium Jacksonville, Florida
I received a letter from Wells Fargo on Feb 4 that my homeowners insurance canceled on Jan 20. I was NOT notified by my insurance company. I called a new insurnace companies to get quotes and had insurance in place Feb 9.
Then I get a letter from Well Fargo on Feb 14 stating that I was not covered from Jan 20 to Feb 9 and they "provided" me with insurance for a fee of $357 for thos 19 days.
This amounts to $19/day!! My current insurance is $3/day and includes contents, etc., which Wells Fargo only covers dwelling. This is outrageous.
I realize I may have to have insurance for those 19 days, but they should not have the right to charge such ridiculous fees? Who gives them this right? And why wasn't I informed that they would be doing this? I might could have gotten my current insurance to cover that period if I had done it when I first applied.
The point is they are taking advantage and getting away with what amounts to robbery and I think they should be stopped. A reasonaable fee would have been acceptable by me but this is absurb that they can charge whatever they want.
I realize this is a small amount and maybe no one really cares, but it is an example of what they are getting away with.
2 Updates & Rebuttals
Karl
Highlands Ranch,Colorado,
USA
Linda L, It appears that the big banks are in much deeper trouble.....
#3Consumer Comment
Wed, February 23, 2011
than they are leading many of us to believe.
Did you know that Wells Fargo has $17 Billion in 'secret life insurance policies' on its employees? You can 'Google' this- BANK EXECUTIVES PROFITING ON THE DEATH OF EMPLOYEES, and read the article that says Wells Fargo and Bank of America each have $17 Billion in these policies. ($34 Billion between both of them!) Chase has $11 Billion. That's $45 Billion in 'secret life insurance policies' by those three banks alone!
Now stay at this site and type in 411913 and read Ripoff Report #411913. It appears that there are about $120 Billion in these policies that many of the big banks have on their employees.
Finally, 'Google' this- FRONTLINE: INSIDE THE MELTDOWN, and watch that documentary on the web. The Wells Fargo CEO was in a meeting with eight of the other CEO's from the big banks a few years ago. These banks received over $120 Billion in one day from the Treasury Secretary. That money was taxpayer's money. The people of the USA kept these banks in business, and look what they're doing to the American people.
You can cancel your accounts with Wells Fargo and open an account with a locally owned & operated credit union. You can also try to get your mortgage through a credit union too. It appears that the big banks are out to make profits any way they can, wouldn't you agree?
Good luck to you!
MovingForward
Wellington,Florida,
United States of America
Its called "Force Placed Insurance" and its in your mortgage docs
#3Consumer Comment
Wed, February 23, 2011
This is becomming an increasing problem with the mortgage servicers like Wells Fargo/Chase etc.
If you look at your mortgage documents you agreed to keep your home/collateral continuously insured during the entire time of the mortgage. If you don't have the home/collateral insured, the mortgage servicer, in this case Wells Fargo, steps in with a policy that protects the collateral at your expense. Naturally the insurance is extremely expensive and only covers the lender, not you, in case of an insurable event happening to the property.
COMMENT: I do not work for any bank or mortgage company. IMO the servicers are using this clause to beef up their bottom line because there are numerous reports, both online and offline, where the property IS insured and the owner provides PROOF of insurance numerous times to the servicer and the servicer still obtains forced placed insurance at the owners expense. I would not be surprised if the servicers kept a percentage of the cost of this type of insurance. The servicers are getting away with it because they will not accept the proof of insurance without an attorney getting involved. There are many reports where proof of insurance has been provided via email, via fax and via snail mail CMRRR and the mortgage servicer denies getting the proof.
As to the original post, you agreed your insurance lapsed. You are responsible for maintaining insurance and providing proof of same to the mortgage servicer annually. Unfortunately this is an expensive mistake. Pay the money and keep an eye on your insurance AND on Wells Fargo, because they will do it again. Next time send them proof of payment before it lapses so if they try to nail you, you have the proof in hand. I would send it CMRRR or FedEx - something with a receipt. Good luck to you.