I'd like to take the time to remind disaster survivors who have insurance money held in escrow by their mortgage company to check if you're being paid interest on those funds. Many institutions will pay interest if asked, although it can take asking several different people, or moving up the chain of command at the mortgage company before finding someone who is willing to admit this. 

This is especially true of homeowners who were included in a class action lawsuit settled in November of 2009. Although this settlement was specifically with Countrywide/Bank of America, it has been reported to us by survivors using many other banks and mortgage companies that they also received interest once they persisted.

Here is a clip from an article posted on our site:

A class action filed on behalf of California fire victims against Countrywide Home Loans was settled November 25, 2009 in Los Angeles Superior Court (Van Der Touw v Countrywide, BC392189).

Based on alleged violations of California's Civil Code Section 2954.8, and Business and Professions Code Section 17200, the class action suit claimed that the mortgage lender, Countrywide Home Loans, breached California laws by not paying homeowners the minimum 2% interest on insurance proceeds held by their lender. The code sections apply to state, not federally, chartered institutions.

The practice of withholding interest on monies held from insurance settlement proceeds or escrow account holders amounted to free funds at the expense of diligent homeowners who suffered damages from an insured peril. Individually, no case would have prevailed because any recovery would have been insignificant compared to the costs of litigation.

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