Collateral Protection Insurance: Improper Charge

On behalf of consumers, Zimmerman Reed is one of the leading law firms challenging certain banks' practices of adding unauthorized charges when force placing insurance on individual consumer retail installment loans. In these transactions, when an individual enters into a loan contract to purchase a new car, boat or mobile home, that individual agrees to maintain physical damage insurance on the collateral. In the event insurance is not maintained, the bank or other lender may purchase physical damage insurance and add the premium for that insurance to the borrower's loan balance. On behalf of individual borrowers, Zimmerman Reed has challenged lenders' practices of placing additional costs, not allowed by the contract, on these loans, causing class members to pay higher premiums for the force placed insurance.

To date, Zimmerman Reed's efforts have resulted in borrowers' eligibility to have returned to them millions of dollars.