RAPID CITY, S.D. (AP) — Black Hills Federal Credit Union and a Wisconsin-based insurance company have agreed to pay $3 million to settle allegations that they improperly raised insurance premiums on thousands of loans.
The proposed settlement to be considered by a judge later this month would resolve an eight-year-old class action lawsuit initially filed by a Rapid City couple.
The Rapid City Journal says Edward and Kathy Thurman got a $30,000 home equity loan from the credit union in 1995 and bought a disability insurance plan offered by CUNA Mutual Insurance Society. The couple sued after the credit union and the insurance company failed to properly inform them their disability insurance premium was increasing.
They gained class action status after taking the matter to the South Dakota Supreme Court. So, the settlement involves 4,461 loans. Kathy Thurman died in 2016.
This story has been corrected to show the couple is suing because the credit union and insurance company failed to properly inform them of the increase, not improperly.
Information from: Rapid City Journal, http://www.rapidcityjournal.com