Insurance rip-off!

[singledad7414]

In late 2000, the mortgage on my home was sold to Chase Manhattan Mortgage. Chase escrowed money for both my real estate taxes and homeowner insurance. At the end of July, 2001, I received a notice from Chase they had no record of my homeowner policy being renewed and needed proof of insurance or they would purchase a policy for me (and charge me $1400!) I
immediately called them and determined that they had not paid my premium and my policy had lapsed. The mixup was caused by the fact that my mortgage was sold and neither the insurance company or Chase contacted the other about getting the premium paid!

I quickly got new insurance and notified Chase to pay the premium from my escrow account. Insurance was restored on Aug. 1.

Now Chase has sent me a notice that because I did not have insurance on my home for the months of June and July 2001, they are charging me $471 for their insurance for those two months. This seems absurd! How can they retroactively charge me for insuring my house two months ago? I did not authorize them buying insurance for me, and straightened out the mixup as soon as I learned of it! How can I fight this ridiculous bank fee?

I live in Northern Kentucky.