The U.S. Court of Appeals for the Third Circuit has nixed a class action challenge to rates charged for force-placed insurance coverage by a reverse mortgage company. Under the so-called filed-rate doctrine, ratepayers may not bring suits to challenge insurance fees that have been registered with state insurance regulators, the appeals court said.

Although the plaintiff-borrowers claim that an alleged kickback scheme involving their mortgage company violates the New Jersey Consumer Fraud Act, as well as the federal Truth in Lending Act and Racketeer Influenced and Corrupt Organizations Act, the ruling effectively shuts down present and future court challenges to insurance rates if they were filed with the appropriate regulatory agency.

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