A suit launched by Merchant Law Group LLP being brought against Manulife Financial, Benesure, and Davis + Henderson has yet to win certification to go ahead as a class action suit, while the defendants are prepared to defend what they think are baseless allegations.
“We strongly deny the allegations in the class action,” a representative from Manulife Financial told MortrgageBrokerNews.ca “They are completely without merit and we intend to vigorously defend our position and reputation. Since the litigation is now before the courts it would be inappropriate to comment further.”
The suit alleges – but has yet to win certification to proceed on those its claims – that Canadians who purchased “Credit Security Plan” or “Mortgage Protection Plan” overpaid and were misled.
"Our litigation contends they were both being overcharged and not getting the insurance protection they thought they were buying,” Lawyer Tony Merchant stated. Canadians “buying these products were often paying an extra fee of $50 or more per month on top of their monthly mortgage payment, but were not receiving the protection or coverage being promoted."
If and when the suit wins certification as a class action, it could still be years before trial commences, according to another lawyer.
“There are so many variables, and a trial date would be a couple of years down the road, maybe more,” another Vancouver lawyer, Bruce Lemer, told MortgageBrokerNews.ca in March.
This recent suit comes after Manulife bought Bensure.