First Union National Bank of Fla. settles suit .
JACKSONVILLE , Fla. 1996-08-28
First Union National Bank of Florida said on Wednesday it agreed to settle a class action law suit involving its collateral protection insurance ( CPI ) program .
To provide for the settlements , First Union has established a common fund of $ 4.7 million for cash refunds and $ 19.4 million in credit refunds for outstanding CPI balances .
The bank is a division of First Union Corp .
The bank said most of the charges resulted from loan portfolios from banks and thrifts that were acquired in the 1980s .
First Union said it has discontinued CPI as an element of its motor vehicle or boat installment loan contracts .
As part of the settlement agreement , customers who had CPI placed on loans from January 1 , 1986 to September 31 , 1996 , will receive cash or credit refunds , the bank said .
Cash refunds will go to those who paid their loans to First Union while credit refunds will go to those who have existing loan balances , the bank said .