|For Immediate Release
December 3, 2013
|Contact Vivian D. Laxton, 410-468-2007
Director, Public Affairs
MIA Orders Title Agency to Refund Consumers $2.3 Million
Company Penalized $533,900 for Overcharging
BALTIMORE –Thousands of Maryland consumers who were overcharged during real estate settlements should receive refunds from their title company in the coming months, following an investigation by the Maryland Insurance Administration. LSI Title Agency Inc., of Coraopolis, Pa., has been ordered 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 must pay an administrative penalty of $533,900, under the terms of a consent order.
The case came to the attention of the Maryland Insurance Administration (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 will not seek to recover from consumers any recordation taxes that were underpaid as a result of faulty calculations during that time. The MIA will monitor closely the company's compliance with the terms of the consent order.
The full text of the consent order, MIA-2013-11-004, is available here.
About the Maryland Insurance Administration
The Maryland Insurance Administration (MIA) is an independent State agency charged with regulating 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 Twitter at @MD_Insurance.
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