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WEST VIRGINIA RECORD

Thursday, March 28, 2024

Kanawha County couple alleges mortgage lender wrongly terminated insurance policy

Lawsuits
Insurance 03

CHARLESTON — A Kanawha County couple is suing a mortgage loan lender, alleging breach of contract and unconscionable inducement.

James Crouch and Bonnie Crouch of Elkview filed a complaint in Kanawha Circuit Court against Beneficial West Virginia Inc., alleging the defendant breached its contractual duties by canceling the policy.

According to the complaint, in June 2004, James and Bonnie Crouch were solicited to refinance their home with Beneficial West Virginia and entered into a loan agreement with an initial principal balance of $54,493.22 at an interest rate of 8.49 percent payable over 20 years. 

However, unbeknownst to plaintiffs, the suit says, their Elkview home had a fair market value below the alleged inflated appraisal amount. Despite that, the plaintiffs say, they routinely paid an additional $71.74 per month for the life insurance policy. 

On April 3, 2017, the suit states, Beneficial issued a written notice, representing to the Crouches that it was canceling the life insurance policy on the mortgage account, breaching the agreement. 

The plaintiffs allege Beneficial West Virginia induced them into accepting a joint credit life insurance policy with a mortgage loan but had no intention of honoring its offer pursuant to the contract.

The Crouches seek trial by jury, appropriate equitable relief, actual damages and all other equitable and just relief. The plaintiffs are representing themselves.

Kanawha Circuit Court case number 18-C-1330

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