For Immediate Release
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$2.3 Million in Refund Checks Headed to Consumers
Maryland Insurance Administration Ordered LSI Title to Repay Customers
(May 15, 2014) – Thousands of affected consumers are receiving refund checks in their mailboxes from LSI Title Agency Inc., a Pennsylvania title company. In December 2013, the Maryland Insurance Administration (MIA)ordered LSI to pay consumers who were overcharged during real estate settlements. Those checks now are in the mail.
The MIA investigated the Coraopolis, Pa., company last year and ordered it to repay 5,338 consumers a combined $2,276,736, plus interest, for recordation tax overpayments made between July 1, 2008, and Dec. 31, 2012. LSI also paid an administrative penalty of $533,900, under the terms of a consent order issued Nov. 14, 2013.
The case came to the attention of the MIA when one consumer reported being charged $2,920 in recordation tax, instead of the $395 he owed. His complaint was referred to the MIA from the Maryland Mortgage Fraud Task Force, of which the MIA is a member. The MIA licenses title producers and agencies that do business in Maryland.
LSI cooperated fully with the investigation and agreed to make full restitution within 120 days. In addition, the company agreed that it would not seek to recover from consumers any recordation taxes that were underpaid as a result of faulty calculations during that time. The MIA has since monitored the company's compliance with the terms of the consent order.
Click here to read the full text of the consent order, MIA-2013-11-004.
About the Maryland Insurance Administration
An independent state regulatory agency, the Maryland Insurance Administration regulates Maryland’s $26 billion insurance industry. For more information about the MIA, please visit www.mdinsurance.state.md.us or follow us on Facebook at www.facebook.com/MDInsuranceAdmin or on Twitter at @MD_Insurance.
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