I recently read a post that suggested identity theft insurance was useless because credit card companies limit the amount of liability for stolen credit cards to a limit of $50. It is true that many issues relating to credit card fraud are resolvable in a straightforward manner, however there are cases when identity theft can cause someone considerable expenses. I currently am handling a case where the defendant was served with a foreclosure action. Someone had “purchased” a home, financed by a major financial institution, using my client’s social security number. The lawyers for the bank, a Manhattan law firm, refuse to drop the lawsuit against my client even though they know that the person at the closing was not my client and that the alleged sellers at the alleged “closing” were not the true owners of the property. Reason? That law firm is also working for the title insurance company and they do not want to pay for the lost loan proceeds, by keeping the litigation alive they can forestall the date when they have to pay such proceeds back to the bank that financed the original loan and my client must defend against these high powered Manhattan litigators.

Stumble it!