Lenders Single Interest

Do you understand your insurance coverage?

Insurance policies can be convoluted and confusing. You may remember that in 2017, Wells Fargo ended up on the hook for $80 million in remediation for forcing customers to pay for auto insurance they didn’t need. In many cases, customers didn’t even know the lender charged them.

This past April, CNN Money reported that two more federal regulators, the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency, are fining Wells Fargo another $1 billion for forcing clients to purchase car insurance and charging others unreasonable mortgage fees. Some customers were unknowingly paying twice and were not able to make the payments resulting in delinquent loans, negatively affected credit scores and even repossession of vehicles.

While lenders can require that customers have comprehensive and collision insurance in place throughout the term of a loan, the insurance cannot be packaged with the loan without being disclosed. The federal regulators take issue with what they call “force-placed” insurance coverage.

If you have questions about your current boat, yacht or marine business insurance coverage call Global Marine Insurance and ask us to take a look at it. We enjoy helping boaters and marine business owners like you fully understand their insurance coverage so you can make educated decisions.

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