Strickland, et al., v. Carrington Mortgage Services, LLC, et al.
Jackson LPI Settlement
1:16-cv-25237-JG

Common Questions

 

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  • Notice was mailed to individuals who had a residential insurance policy lapse, who had hazard, flood, flood-gap, or wind lender-placed insurance policy ("LPI Policy") issued for a residential property, and were charged by Fay Servicing LLC ("Fay"), as the mortgage servicer, for the LPI Policy between January 1, 2009 and August 9, 2017 ("Class Period").

    The Court ordered the Notice to be sent to Class Members because these individuals have a right to know about the proposed Settlement of this class action lawsuit, which concerns LPI issued by one or more of the Insurer Defendants, and about their options, before the Court decides whether to approve the Settlement.

    If the Court approves the Settlement, and if you satisfy the claim criteria and submit a timely and valid claim, you will receive a cash award. However, the cash award will not be paid until any objections or appeals are resolved.

  • The Notice is part of a package sent to all potential Fay Settlement Class Members. The package includes this Notice, the Instructions for the Claim Form, and the Claim Form. This package explains the lawsuit, the Settlement, Class Members' legal rights, what benefits are available, who is eligible for them, and how to get them. You may download the entire Notice packet on the Important Documents page.

    The Court in charge of the case is the United States District Court for the Southern District of Florida, and the case is called Strickland, et al., v. Carrington Mortgage Services, LLC, et al., Case No. 1:16-cv-25237-JG.

    Plaintiffs Latasha Jackson and Barbra Bowles sued on behalf of all Fay Settlement Class Members and are called the “Plaintiffs.” The companies they sued, Fay and the Insurer Defendants, are called the “Defendants.”

  • This lawsuit involves lender-placed insurance (“LPI”), which is insurance (hazard, flood, flood gap, or wind only) that is placed on a borrower’s property to protect the borrower and mortgage lender when the borrower’s insurance policy lapses, or when the borrower does not maintain a homeowner’s insurance policy that is acceptable to the mortgage lender. When an LPI Policy is placed pursuant to the borrower’s mortgage contract, Fay pays premiums to the LPI insurer that issues the policy, in this case, one of the Insurer Defendants, and then Fay charges borrowers for those premiums.

    Plaintiffs brought claims on behalf of all persons in the Fay Settlement Class (as defined in FAQ #5). Plaintiffs allege that when a borrower was required to have insurance for his or her property pursuant to a residential mortgage or home equity loan or line of credit, and evidence of acceptable coverage was not provided (for example, when the insurance policy did not exist or had lapsed), Fay would place insurance in a manner such that Fay allegedly received an unauthorized benefit. Plaintiffs allege further that Fay did so primarily to receive other consideration from the Insurer Defendants. Plaintiffs also allege that the way in which LPI policies were obtained and placed caused the premiums and the amount of coverage to be excessive.

    All Defendants expressly deny Plaintiffs’ allegations and assert their actions were and are fully authorized under the mortgage instruments and by law. They also expressly deny that they did anything wrong. There has been no court decision on the merits of this case and no finding that Defendants committed any wrongdoing.

  • Both sides have agreed to a Settlement to avoid the cost and risk of a trial and so that borrowers can get benefits in exchange for releasing Defendants from liability.

  • To see if you will be affected by this class action, you first have to determine if you are a member of the Fay Settlement Class.  The "Fay Settlement Class" includes:

    • All borrowers in the United States who, from January 1, 2009 to August 9, 2017 (“Settlement Class Period”), inclusive of those dates, were charged by Fay for a hazard, flood, flood-gap, or wind-only LPI Policy for Residential Property issued and/or procured by the Insurer Defendants during the Settlement Class Period and who either (i) paid to Fay all or part of the Net Premium for that LPI Policy, or (ii) were charged but did not pay and still owe to Fay the Net Premium for that LPI Policy.


    Excluded from the Fay Settlement Class are: (i) individuals who are or were during the Settlement Class Period officers or directors of Fay, Insurer Defendants, or of any of their respective Affiliates; (ii) any justice, judge, or magistrate judge of the United States or of any State, their spouses, and persons within the third degree of relationship to any of them, or the spouses of such persons; (iii) borrowers who only had an LPI Policy that was cancelled in its entirety such that any premiums charged and/or collected were fully refunded or credited to the borrower or the borrower’s escrow account; and (iv) all borrowers who file a timely and proper request to be excluded from the Fay Settlement Class.

    The Settlement Class Period begins on January 1, 2009 and continues through and including August 9, 2017.

    LPI Policy means one or more certificates for lender-placed hazard, flood, flood-gap, or wind insurance policy or policies issued by one of the Insurer Defendants applicable to a borrower’s Residential Property, and placed pursuant to a mortgage loan agreement, home equity loan agreement, or home equity line of credit serviced by Fay to cover a borrower’s failure to maintain the required insurance coverage on the residential property securing the loan.

  • If you are not sure whether you are included in the Fay Settlement Class, or if you have questions about the case, call the toll free number, 1-844-702-7327.

  • Defendants have agreed to pay a cash award in the amount of 10.5% or 8% of the Net Premium charged by Fay to the claimant during the Class Period for the LPI Policy, provided each Fay Settlement Class Member timely submits a valid and properly completed Claim Form and a form of verification of their identity.  The amount you receive depends on whether you paid Fay all or a portion of the premium for the LPI Policy.  The amounts are as follows:

    1. You will receive 10.5% of the Net Premium if you were charged by Fay for an LPI Policy issued by an Insurer Defendant during the Class Period and made one or more full monthly mortgage loan payment(s) to Fay after either (a) your existing escrow account was charged a premium for the LPI Policy; or (b) a created escrow account upon an LPI placement was charged a premium for the LPI Policy.
       
    2. You will receive 8% of the Net Premium if you were charged by and still owe Fay for an LPI Policy issued by an Insurer Defendant during the Class Period, and did not make at least one full monthly mortgage loan payment to Fay after either (a) your existing escrow account was charged a premium for the LPI Policy; or (b) a created escrow account was charged a premium for the LPI Policy.


    The amount of a Fay Settlement Class Member’s cash award depends on whether he or she paid part or all of the premiums charged by Fay for the LPI Policy. Each Fay Settlement Class Member must submit a Claim Form to be eligible to receive a payment. Defendants also have agreed to injunctive relief from which you may benefit. The Settlement benefits are described in more detail in the Settlement Agreement, which is available on the Important Documents page.

    This Settlement will not affect any rights or claims that you may have under any settlement between Defendants and any governmental entity. This Settlement also will not affect any claim for benefits on your LPI Policy that you have made or may make in the future for property damage or loss to your residence. However, as described below (see FAQ #11), this Settlement will affect all claims that you may have relating to Defendants’ acts, omissions, policies, or practices concerning LPI Policies issued to Fay and charges by Fay for LPI Policies during the Class Period.

  • To receive a cash award, you must be a Fay Settlement Class Member and must send in a properly completed and accurate Claim Form and identity verification document(s) by U.S. Mail, postmarked by March 28, 2018 (“Claim Deadline”) or, if a private mail carrier is used, a label reflecting a sending date no later than the Claim Deadline. You may also submit a completed Claim Form by uploading it on the Online Claim Filing page, or submitting a completed Claim Form online, no later than midnight Eastern Standard Time on the Claim Deadline. You must also upload electronic copies of verification document(s) to the Settlement Website with the appropriate claim number to associate with the Claim.

    The Claim Form Instructions and a Claim Form were sent to Class Members with the Notice. You may also obtain a Claim Form on the Important Documents page, or you can ask for one by calling toll-free, 1-844-702-7327. Please read the Claim Form Instructions carefully, complete the Claim Form, sign it, and mail it postmarked or submit online on the Settlement Website no later than March 28, 2018. With your Claim Form, you must also confirm your identity through one of several options - the Claim Form Instructions and Claim Form explain what those options are. If your Claim Form is not properly completed and/or all required information is not provided, you will not be paid.

  • The Claim Form Instructions and Claim Form explain the different types of monetary relief available to Fay Settlement Class Members, depending upon whether they paid all or part of their LPI premium.

    As explained on the Claim Form, Fay Settlement Class Members are eligible for a cash award of 10.5% of the Net Premium charged to the claimant if during the Class Period they made at least one full monthly mortgage payment to Fay after either: (a) their existing escrow account was charged the premium for the LPI Policy; or (b) an escrow account was created to charge the premium for the LPI Policy.

    All other Fay Settlement Class Members who were charged by Fay for an LPI Policy during the Class Period, and who have not paid and still owe the Net Premium for that policy, are eligible for a cash award of 8% of the Net Premium charged by Fay during the Class Period for the LPI Policy. The Net Premium is the amount of the LPI premium charged less any refunds already provided to the borrower.

  • The Court will hold a hearing on January 22, 2018 to determine whether to approve the Settlement. If the Court approves the Settlement, there may be appeals after that. It is always uncertain when any appeals, if filed, will be resolved. Cash payments will be mailed after the Settlement becomes final and effective, which means after all appeals have been resolved. Please be patient.

  • If you are a Fay Settlement Class Member and unless you exclude yourself, you will remain in the Fay Settlement Class. That means you cannot sue, continue to sue, or be part of any other lawsuit against Defendants about LPI or the issues that were or could have been raised in this case. It also means that all of the Court’s orders concerning the Fay Settlement Class will apply to you and legally bind you, including the Releases described in detail in Section 10 of the Settlement Agreement, which is available on the Important Documents page. The Releases describe the legal claims that you give up if this Settlement is approved and you do not exclude yourself. Please carefully read the Releases in the Settlement Agreement.

  • If you do nothing as a Fay Settlement Class Member, you’ll receive no money from this Settlement. But, unless you exclude yourself from the Settlement, you will not be able to start a lawsuit or continue with a lawsuit against Defendants about the legal issues that were or could have been raised in this case, ever again.

  • If you are within the definition of the Fay Settlement Class (see FAQ #5), you are automatically a member of the Fay Settlement Class. However, you can exclude yourself, or “opt out” of the Fay Settlement Class, if you do not wish to participate. This means you will receive no payment as part of this Settlement nor any of the Settlement benefits.

    You cannot ask to be excluded over the phone or on the internet. To exclude yourself, you must mail a written request for exclusion to the Settlement Administrator that includes: (1) the case name and number; (2) your name and your address; (3) your original signature; and (4) a statement requesting exclusion from the proposed Settlement, such as “I hereby request that I be excluded from the proposed Fay Settlement Class in the Strickland Class Action”. Your written Request for Exclusion must be postmarked no later than December 13, 2017 and mailed to JacksonLPISettlement, P.O. Box 6878, Broomfield, CO 80021. You cannot “opt out” of the Settlement on behalf of other members of the Fay Settlement Class.

  • Any member of the Fay Settlement Class who does not opt out of the Settlement in the manner and by the deadline described above will be part of the Fay Settlement Class, will be bound by all Orders and proceedings in this action, and will give up the right to sue any of the Defendants for the claims that this Settlement resolves. If you want to opt out, you must take timely affirmative written action even if you have filed a separate action against any of the Defendants or are a putative class member in any other class action filed against any of the Defendants. If you have a pending lawsuit, please contact your lawyer in that lawsuit immediately. Remember, the exclusion deadline is December 13, 2017.

  • No. If you are a Fay Settlement Class Member and exclude yourself, do not send in a Claim Form to ask for any money. But, you may sue or continue to sue Defendants individually, or you may be part of a different lawsuit against Defendants.

  • You may object to or comment on all or part of the proposed Settlement if you are a Fay Settlement Class Member and do not opt out of the Settlement. To do so, you (or your attorney at your expense) must submit a valid objection.

    To be valid, your objection must be in writing, personally signed by you, and must include: (a) the case name and number; (b) your name, address, telephone number, and, if represented by an attorney, his or her contact information; (c) the basis for your objection; and (d) a statement of whether you intend to appear at the Final Approval Hearing.

    Your objection must be filed with the Clerk of Court, with copies mailed to counsel for all of the parties identified below, postmarked no later than December 13, 2017:

    CLERK OF THE COURT
    Clerk of the United States 
    District Court for the Southern 
    District of Florida
    400 North Miami Avenue 
    8th Floor
    Miami, FL 33128

    CLASS COUNSEL
    Adam M. Moskowitz 
    Kozyak, Tropin, &
    Throckmorton, LLP 
    2525 Ponce de Leon Blvd. 
    9th Floor
    Coral Gables, FL 33134

    COUNSEL FOR FAY
    Elizabeth Campbell
    Locke Lord LLP
    525 Okeechobee Blvd.
    Suite 1600
    West Palm Beach, FL 33401

    COUNSEL FOR AMIG DEFENDANTS
    Mark A. Johnson
    Rodger L. Eckelberry
    Robert Tucker
    Baker & Hostetler LLP
    200 Civic Center Drive, Suite 1200
    Columbus, OH 43215

    COUNSEL FOR SWBC
    Diana C. Manning 
    Benjamin J. DiLorenzo 
    BRESSLER, AMERY & ROSS, P.C.
    325 Columbia Turnpike
    Suite 301
    Florham Park, NJ 07932

     
  • The Court appointed the following lawyers to represent you and all other Fay Settlement Class Members. Together, these lawyers are called Class Counsel. You will not be charged any money to pay for these lawyers.

    Adam M. Moskowitz
    amm@kttlaw.com
    Kozyak Tropin & Throckmorton, LLP
    2525 Ponce de Leon Blvd., 9th Floor
    Coral Gables, Florida 33134
    Telephone: (305) 372-1800
    Facsimile: (305) 372-3508

    Aaron S. Podhurst
    apodhurst@podhurst.com
    Podhurst Orseck, P.A.
    SunTrust International Center
    One SE 3rd Ave., Suite 2700
    Miami, Florida 33131
    Telephone: (305) 358-2800
    Facsimile: (305) 358-2382

    Lance A. Harke
    lharke@harkeclasby.com
    Harke Clasby & Bushman LLP
    9699 NE Second Ave.
    Miami Shores, FL 33138
    Telephone: (305) 536-8220
    Facsimile: (305) 536-8229

  • Class Counsel will ask the Court for attorneys’ fees and expenses up to $375,000, and case contribution awards of $5,000 each paid to Settling Plaintiffs Latasha Jackson and Barbra Bowles for their time and effort in the matter. The Court may award less than these amounts.

    Defendants will separately pay attorneys’ fees and expenses and the case contribution awards that the Court awards, up to maximums of $375,000 in attorneys’ fees and expenses and $5,000 of case contribution awards to each of the Settling Plaintiffs, Latasha Jackson and Barbra Bowles. These payments will not reduce the amount of any cash awards to Fay Settlement Class Members. Defendants have agreed not to oppose the applications by Class Counsel for attorneys’ fees and expenses or the case contribution awards to Settling Plaintiffs that do not exceed those amounts.

  • The Court will hold a hearing about the Settlement at 9:30 a.m. on January 22, 2018, in the United States Courthouse located at 99 NE 4th Street, Eleventh Floor Courtroom Number 11-3, in Miami, Florida. At this hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate, and Class Counsel’s applications for attorneys’ fees and expenses and case contribution awards to the Settling Plaintiffs. If there are valid and timely objections, the Court will consider them.

    The Court may listen to people who have properly asked in writing beforehand to speak at the hearing. After the hearing, the Court will decide whether to approve the Settlement. It is unknown how long this decision will take.

  • You cannot speak at the hearing if you have excluded yourself from the Fay Settlement Class. However, if you are a member of the Fay Settlement Class, you may ask the Court for permission for you or your attorney to speak at the hearing. To do so, you must file with the Clerk of the Court and serve on all counsel for the parties (at the addresses identified above in FAQ #16) a notice of intention to appear at the hearing. The notice of intention to appear must include the case name and number; your name, address, telephone number, and signature, and, if represented by counsel, their contact information; and copies of any papers, exhibits, or other evidence that you intend to present to the Court in connection with the hearing. The notice of intention to appear must be filed with the Clerk of Court and served on all counsel no later than December 13, 2017.

    If you do not file a notice of intention to appear by this deadline and/or follow the requirements in the Settlement Agreement and the Notice, you will not be entitled to appear at the hearing to raise any objections.

  • The notice summarizes the lawsuit and Settlement. More details are in the Settlement Agreement, which is available on the Important Documents page. You may also contact Class Counsel, identified in FAQ #17 above.

    In addition, you may call 1-844-702-7327 toll free, or search this website to find answers to common questions about the Settlement, a Claim Form, and other information to help you determine whether you are eligible for a payment from this Settlement.

    PLEASE DO NOT CALL OR WRITE THE COURT, THE JUDGE OR HIS STAFF, OR DEFENDANTS OR THEIR COUNSEL FOR INFORMATION OR ADVICE ABOUT THE SETTLEMENT

  • If you would like to update your name, you must mail a written name change request to the Settlement Administrator at the below address, along with proof of your name change. Valid proof of name change includes, but is not limited to, a copy of a marriage license, divorce decree, or court order.

    JacksonLPISettlement
    PO Box 6878
    Broomfield, CO 80021

  • Notice of the settlement was mailed to all potential members of this class action settlement. However, any borrower who had an LPI Policy that was cancelled in its entirety such that all premiums charged and/or collected were fully refunded or credited to the borrower or the borrower's escrow account are excluded from this settlement and not entitled to any payment. So, even if you received notice of this settlement, if all of your LPI charges were refunded or credited, you are not part of this class action settlement and are not entitled to any payment.

For More Information

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Mail

JacksonLPISettlement
PO Box 6878
Broomfield, CO 80021