Credit Insurance Fraud

Credit insurance is offered to consumers as a way to pay back some or all of a specific loan or line of credit in the event you die, lose your job, and/or become significantly disabled or ill. A credit insurance company may charge a monthly premium to maintain credit insurance. However, a credit insurance company sometimes charges a single upfront premium to insure a loan on a vehicle, boat or RV. This single premium then becomes part of the consumer's financing, and the credit insurance company earns the premium month by month until the insured loan runs its course.

If you have a loan that is insured and that loan ends prematurely because you have paid off, traded or refinanced the loan early or wrecked the vehicle and had it declared a total loss before it was paid off, your credit insurance company is obligated to refund you the premium for the months it has not yet earned. However, most credit insurance companies will not refund a consumer's unearned premium unless the consumer requests the refund. The firm of Butler, Wooten & Fryhofer has been instrumental in obtaining class action relief for thousands of credit insurance consumers whose insured loans ended early but who did not receive their money back from credit insurance companies.

If you believe that a credit insurance company is wrongfully withholding your premiums, or has harmed you and others in another way, please contact us.