Bank of America and HSBC have reportedly agreed to settle lawsuits brought by homeowners who claim the banks overcharged them for force-placed insurance.
However, as per a Bloomberg News report, the amount of the settlements has not yet been disclosed.
The homeowners alleged that the banks got a financial windfall by cutting deals with insurance companies and over-charging borrowers for the coverage.
In the original complaint filed in 2012, plaintiffs alleged that Bank of America's "force-placed insurance policies cost substantially more than comparable policies that could be purchased on the open market." They alleged that they were charged for fees and commissions that the insurer had paid to the bank, according to the report.